Page 123 - Challenges in Corrosion Costs Causes Consequences and Control(2015)

DATA COLLECTION AND ECONOMIC ANALYSIS 101

TABLE 2.4 Costs to Prevent Corrosion by Protection Method
Protection Method Cost (Yen × Billion) Total Corrosion Costs (%)
Paints and protective coatings 1595 63
Surface treatment 648 24
Corrosion-resistant materials 239 9
Rust prevention oils 16 1
Inhibitors 16 1
Cathodic protection 16 1
Research 22 1
Total 2551 100

TABLE 2.5 Costs to Prevent Corrosion by Industry Sector
Industry Sector Corrosion Cost (Yen × Billion) Total Corrosion Cost (%)
Energy 60 6
Transportation 195 19
Building 175 17
Chemical industry 154 15
Metal production 27 3
Machinery and manufacturing 433 42
Total 1044 100

The Uhlig methodology was used to determine the corrosion costs on the basis
of the cost of corrosion protection products and services such as coatings, inhibitors,
corrosion-resistant materials, and cathode protection. The total cost amounted to 2.5
trillion yen (US $9.2 billion). Paint and protective coatings accounted for nearly US
$6.1 billion. Surface treatments and corrosion-resistant materials accounted for nearly
two-thirds of the corrosion costs. Surface treatments and corrosion-resistant materials
amounted to nearly one quarter and one-tenth of the costs, respectively. The remain-
ing 5% of the cost was assigned to other corrosion control methods (Table 2.4).
The Hoar methodology was applied to determine the cost of corrosion by specific
industry sector. The results are summarized in Table 2.5.
The total costs by this method were nearly 1 trillion yen. Machinery and manu-
facturing had the highest cost of corrosion amounting to 40% of the total costs. The
figures in the table show the corrosion costs to be substantial for all the sectors.
The difference between the two cost estimates determined by the methods of Uhlig
and Hoar is quite large. The estimate by Uhlig’s method is 1.5 trillion yen higher than
the value estimated by the Hoar method. This large difference in estimated costs may
be because of some omissions of some costs in the Hoar method of the estimation
of costs. In general, the estimated costs by “industry sector analysis” (Hoar method)
provides a higher cost than the “materials and services” (Uhlig method).
For example, the cost to prevent corrosion in the food industry was not calculated.
The Uhlig method estimated the cost of surface treatment of tin-coated steel used in
the production of cans at 79 billion yen. In addition, the cost to prevent corrosion by