Time and Money Wastage on Rust: The True Cost of Rust or Corrosion

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Rust or corrosion is the costly enemy of many economies. It can cause billions of dollars in annual losses for companies.

According to a study conducted by NACE International, rust and corrosion in the United States alone are costing losses of $276 billion, or 3.1% of its Gross Domestic Product. Similarly, other industrialised countries are also experiencing corrosion issues of almost the same magnitude.

In a research conducted by Perth-based Curtin University of Technology in 2009, corrosion may be costing the Australian economy by as much as $30 billion annually. Much of this, according to the research, is preventable.

With the understandable shift towards international purchasing and shipping coupled with the increasing cost of energy and resources, this worldwide corrosion issue will only increase.

Because of the rising cost of corrosion issues on an individual country’s economy itself, manufacturing and fabrication companies that deal in metals need to implement cost-effective corrosion prevention – or at least reduction – methods. And to see the reality of things, since all business is competitive, companies must conserve resources and reduce product rejections. Corrosion solutions must be planned out and implemented, especially if metal-based products are involved. To not do so will allow rust to wreak havoc on company products, resulting in more losses.

If rust problems are not met head-on, these losing factors will occur:

Labour costs

  • Rust complaints from customers will affect customer service, sales, and operations.
  • Need to meet with engineering and other departments concerned to look for the root cause, then implement re-working and resolutions.
  • Unscheduled inspection of related products and materials in order to implement protective coatings using seal n peel products newly purchased.

Shipping/Receiving costs

  • Manufacturer incurs the cost of shipping rejected rusty product back to the facility and cost of shipping back to the customer after derusting (possibly using seal n peel products), or shipping replacement product.

Material costs

  • New costs incurred to de-rust all materials and metals to produce new products.

Opportunity costs

  • Lost opportunity to spend time with new customers due to time and cost spent on the present trouble.
  • Lost opportunity to work and manufacture newly designed products.

Reputation costs

  • The largest cost is always damage to the company’s reputation.
  • The entire company and brand suffer because of the rust issue since the customer loses confidence in the company’s ability to service well.

Whether a company is facing rust issues now or not, eventually it will, so the company needs to get ahead of rust before it rears its ugly oxidising head. For those heavy metal issues, turn to Unituff 452 or Unituff OGS peelable protective coating to stop corrosion before it can even start. Formerly called Seal'n'Peel, Unituff 452 and Unituff OGS (specially made for stainless steel) will lock out all components that can cause rust (moisture, weather, chemicals, etc.).

To get ahead of rust, visit https://unituffglobal.com/ for more information.