Page 118 - Challenges in Corrosion Costs Causes Consequences and Control(2015)

96 CORROSION COSTS

The review of prior studies on the costs of corrosion has provided useful back-
ground and direction for further study. The studies addressed only the extent and
magnitude of possible savings, not the means of realizing such savings.
The review of the prior studies on the costs of corrosion is useful in the current
and future studies. Both technical content and methods have been reviewed. Some
specific areas where the previous studies have proven useful are:

1. Development of comprehensive lists of corrosion cost elements to be used in
the analysis of total costs and costs in individual sectors.
2. Identification of categories in which to divide the total economy into two sec-
tors, namely: (i) a set of industrial sectors, and (ii) a list of corrosion control
methods.
3. Gathering background and reference information on the costs of corrosion and
corrosion control methods.
4. Identification of preventive strategies and ascertaining potential savings.

2.2 DATA COLLECTION AND ECONOMIC ANALYSIS

The costs of corrosion have been a subject of interest to many researchers and the
methods used for data collection and economic analysis are reviewed in chronological
order.

2.2.1 The Uhlig Report (United States of America, 1949)
This study, concerned with “the cost of corrosion in the United States” and led
by H.H. Uhlig (1), was the earliest effort to estimate corrosion costs. The annual
cost of corrosion to the United States was estimated to be $5.5 billion or 2.1% of
the 1949 GNP. This study arrived at the total costs by summing up the cost for
both the owner/operator (direct cost) and for the users (indirect cost) of corroding
components. The cost for the owners/operators was estimated by summing up cost
estimates for corrosion prevention products and services used in the entire U.S.
economy. They counted the total amount of corrosion prevention products and
services through the entire economy (e.g., coatings, inhibitors, corrosion-resistant
metals/alloys, and cathodic protection) and multiplied it by their prices. The costs
for private consumers/users were evaluated as costs because of domestic water
heater replacement, automobile repairs, and replacement of automobile mufflers.
This method has the advantage in that the costs are readily available for well-defined
products and services. The direct and indirect costs of corrosion are given in
Table 2.1.

2.2.2 The Hoar Report (United Kingdom, 1970)
In March 1966, the UK Committee on Corrosion Protection was established by
the UK minister of technology under the chairmanship of T.D. Hoar. In 1970, the