Avoid Corrosion Costs with VCI
When it comes to businesses that rely on non-corroded metal to function, rust can have unexpected effects, such as decreased productivity, accidents, and significant financial loss. Every year, companies lose billions of dollars in operations due to corrosion alone.
Most businesses need to be aware of the total expense of corrosion. However, a new study by NACE International (International Measures of Prevention, Application, and Economics of Corrosion Technology Study) illustrates precisely how severe and costly the corrosion problem is.
Simply put, the total cost of corrosion around the world is enormous. The paper estimates that it will cost $2.5 trillion (USD), which does not even account for personal safety or environmental effects.
This $2.5 trillion figure is about 3.4% of the world’s gross domestic product (GDP); thus, corrosion is a significant and expensive issue.
Unfortunately, sometimes businesses only completely comprehend the total cost of corrosion once a crisis has arisen. For instance, a company may reach a point when the cost of restoring materials due to corrosion outweighs the overall profit. Or even worse, corrosive equipment could cause accidents in a business.
Implementing corrosion controls can help businesses save money. According to a survey by NACE International, the total annual savings worldwide might range from $357 to $875 billion (USD) if more people adopt these solutions. This amounts to 15–35% of the total cost of corrosion, which is a significant achievement.
What is a Corrosion Management System?
It is a “documented collection of processes and procedures necessary for planning, carrying out, and continuously enhancing an organisation’s ability to manage the danger of corrosion for existing and future assets and asset systems.”
The secret to developing a CMS that works for your company is to balance reliable corrosion technology and a reliable management system. By integrating these two components, businesses can more successfully prevent corrosion, which boosts their bottom line.
There are two types of management in a CMS:
Elements of a management system
- Enablers, controls, and measures (such as communication, risk management, documentation, and incident investigation)
- These are the substances that deal with all dangers, even those unrelated to corrosion (which are still essential to have to mitigate corrosion issues)
Elements Specific to Corrosion
- Plans (depending on the type of corrosion, ROI, how vital the asset is, its life cycle, and industry regulations) (based on the type of corrosion, ROI, how critical the asset is, its life cycle, and industry regulations)
- Procedures and Workplace Conduct (how to implement, mitigation procedures, and inspection)
Generally, particular corrosion management should flow organically into an organisation’s overall management structure.
Corrosion Management System Implementation
The most important aspect of a CMS is that it must be used throughout an asset’s entire life cycle. As a result, it must be incorporated into the design of an asset to be as effective as possible and reap the long-term financial benefits of corrosion prevention:
- Mothballing, decommissioning, and abandonment (ADM)
Measuring the Business Impact of Corrosion
Numerous sectors can benefit from reducing the risk of corrosion and proactively managing it when it does occur. Organisations can measure the following business impact parameters when assessing the cost of corrosion, according to NACE:
- Explicit costs (revenue lost)
- People (accidents/deaths)
- Repair (cost of parts and labour for replacement) (cost of parts and labour for replacement)
- Large-Scale Accident Risk
- A decline in reputation (potential loss of clients or staff, increased borrowing costs, more government oversight)
Corrosion Control is a Business Strategy
Corrosion control is frequently given low priority in businesses; therefore, stakeholders must be aware of the benefits of proactive corrosion management. However, profits can be substantial only if corrosion is adequately controlled.
When starting a business, corrosion control should be considered during the planning stage. In today’s businesses, the operations department is the best place to implement corrosion control techniques. Corrosion prevention should be activated and sustained through programmes and even staff employees.
Future of Corrosion Control
After describing the cost effects of corrosion, it is essential to focus on the future of corrosion control. This is done on a corporate level, beginning with operations divisions and corrosion-specific projects. Another way to achieve corrosion management is to invest in corrosion control techniques and materials.
There is a comprehensive selection of corrosion inhibitor packaging and rust treatments available. Volatile Corrosion Inhibitor (VCI) poly technology offers knowledgeable on-site assistance in 12 countries worldwide.