Corrosion is a naturally occurring phenomenon commonly defined as the deterioration of a material (usually a metal) that results from a chemical or electrochemical reaction with its environment.
Rust or more generally, corrosion can wreck havoc on your company. Rust problems can shut down your assembly line, cause re-work, cause customer rejections, increase scrap costs, cause production delays, create health and safety concerns and equipment failure.
Many companies or organizations don’t really know how much rust is costing them.
Cost of Corrosion-Pakistan
Pakistan has been incurring an annual loss of Rs250 to Rs300 billion (about $3 billion) which is 3 to 4 percent of GNP on account of infrastructure, industrial and household corrosion. This did not include the damage to environment and loss of production due to unscheduled breakdowns according to engineers, experts and entrepreneurs said during the 2nd International Conference and Exhibition on Corrosion Management (ICECM-2011) in Karachi.
Experts said 25 percent of the losses of corrosion can be saved with the help of preventive measures, including better initial design, protecting the system by applying protective coatings and regular maintenance.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Acting President Khalid Tawab said around 80 per cent of all unscheduled shutdowns and breakdowns in local industries are due to corrosion and process fouling.
Byco Petroleum Marketing Business President Kalim Siddiqui also pointed out that corrosion causes unscheduled breakdowns and production losses which are an extra burden on the economy.
Cost of Corrosion-Worldwide
NACE International conducted a two-year global study in which it estimates the global cost of corrosion to be US$2.5 trillion, equivalent to roughly 3.4 percent of the global Gross Domestic Product (GDP).
The study found that implementing corrosion prevention best practices could result in global savings of between 15-35 percent of the cost of damage, or between $375-875 billion (USD).
NACE also conducted a case study of corrosion management within the automobile industry – which it found over time saved US$9.6 billion or 52 percent annually in 1999 compared to 1975.
"Looking at the success within the auto industry, corrosion prevention decisions were made at the highest levels," said Bob Chalker, CEO of NACE International. "The result has been lower corrosion costs for auto makers and longer lasting autos for consumers.