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CC Technologies proudly presents the cost of corrosion study. CC Technologies and NACE International study shows the cost of corrosion in the U.S. is $276 Billion per year. Project funded by FHWA.

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Economic Impact of Corrosion is $276 Billion

The results of a study performed by CC Technologies, under contract with the Federal Highway Administration and in cooperation with NACE International, has estimated the annual economic impact of corrosion to the United States economy at $276 billion or approximately 3.1% of the Gross Domestic Product (GDP). From this total, Transportation and Utilities account for 34.9%, Manufacturing 31.5%, Construction 18.1%, Federal Government 7.3%, Services 5.2%, and State and Local Government 3.0%.

The economic impact of corrosion to the United States was estimated by analyzing the costs associated with the individual industrial sectors. Twenty-six individual sectors were analyzed that accounted for $2,422 billion of the total $8,790 billion GDP in 1998. The impact of corrosion to the total economy was extrapolated by examining each of the economic categories above.

It is critical to realize that the corrosion impact of $276 billion was estimated as the direct cost of corrosion, that is the costs to owners and/or operators. The indirect cost of corrosion to "Society" can also be significant. An economic life-cycle analysis of bridge repair costs indicated that the cost of lost productivity due to traffic congestion could be more then 10 times greater than the direct cost of the bridge repair project. It is estimated that the overall indirect corrosion costs are at least as great as the direct corrosion costs.

This staggering cost due to corrosion has a significant impact on the sectors in which these costs occur. Controlling these costs by best-practice engineering could save the U.S. economy billions in unnecessary expenses. One of the most critical first-steps is recognizing the magnitude of these costs and making the decision-makers aware that savings are possible. This will be a continuing effort of the Project Team.

Comments and additional information contact Dr. Gerry Koch

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