Corrosion Study Reveals $63 Billion Annual Cost to Canadian Taxpayers


The Association for Materials Protection and Performance (AMPP) today released a new study which examines the economics of corrosion and its management in Canada. The study, International Measures of Prevention, Application and Economics of Corrosion Technology (IMPACT), estimates a price tag of $63 Billion CAD annually for corrosion-related deterioration and failures of national assets. The study also identified savings between 15-35% of that amount through implementation of existing corrosion control practices.

“Today 2.9% Of Canada’s GDP is spent on corrosion-related problems,” said Monica Hernandez, AMPP Country Coordinator based in Alberta, Canada. “It’s staggering. But to reduce the cost of corrosion, Canadian government and businesses can and must adopt more robust corrosion management practices including plans for addressing corrosion across the entire life cycle of an asset.”

The study resulted in recommendations including the advancement of corrosion knowledge and the development of a skilled workforce through Canada’s educational system. Corrosion-focused training bodies are recommended as a resource to strengthen efforts by asset owners seeking to implement an effective Corrosion Management System framework.

“Corrosion mitigation is not solely the concern of corrosion engineers and those who maintain corrodible assets,” said Douglas Kellow, AMPP Northern Area Director and National Business Manager for Brenntag Canada. “It is the responsibility of anyone within an organization who designs, builds, operates, or maintains an asset to ensure its safety and efficacy. Everyone involved with that asset can be held responsible if it fails. It’s in the owner’s best interest to not only hire a qualified team, but to stay apprised of asset condition as well.”

“Advancing corrosion knowledge and developing a skilled workforce through public policy initiatives and corrosion-focused training bodies is essential to designing and maintaining assets,” said Robert Kucheran, General Vice President of the International Union of Painters and Allied Trades (IUPAT) based in Ontario, Canada. “In fact, case studies on costly infrastructure failures often identify untrained personnel as the cause of those failures.  This is an unnecessary cost, given that Canada has the expertise needed to train, re-train, and upskill in this area.”

“There must be a change in the existing cultural mind-set,” said Kellow. “Corrosion management has to be part of an organization’s strategic planning. It’s there to increase return on investment of industrial assets and to increase public and environmental protection.”

Industry sectors analyzed for the IMPACT study include energy, transportation, municipal, manufacturing, marine, and mining. These sectors stand to save 15-35% of current costs by applying existing corrosion mitigation techniques. There are opportunities for further savings as these measures also extend the lifecycle of corrodible assets and ensure organizations operate at optimum sustainability.

The IMPACT Canada Study was completed by AMPP in partnership with the International Union of Painters and Allied Trades (IUPAT). Learn more about the study here.

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The Association for Materials Protection and Performance (AMPP) is focused on the protection of assets and the performance of industrial and natural materials. AMPP was established in 2021 following a merger between NACE International and SSPC: The Society for Protective Coatings. The new association unites 145 years of corrosion control and protective coatings expertise and service to industry and members throughout Canada and worldwide. Today, AMPP is the world’s largest corrosion control and protective coatings organization serving more than 40,000 members in 130 countries. AMPP is headquartered in the United States with offices in Houston and Pittsburgh, and additional offices in Brazil, Canada, China, Dubai (training center), Malaysia, Saudi Arabia, and the United Kingdom.