Materials Cost

Economics enter into every business decision. But, the important criteria should not be the initial cost of a material, but its life-cycle cost or cost effectiveness. It usually is much more cost effective to specify a material that will provide an extended life, particularly in areas that are difficult to repair or in components that would cause major shut-downs in case of failure. The following two extreme alternatives describe the consideration given to economic factors when selecting materials for specific service:

A low initial cost system largely based on carbon steel and cast iron which will require considerable maintenance over the life of the plant. Such a system is a reasonable choice in areas where labor costs are low and material is readily available

A system based mainly on alloy materials which, if correctly designed and fabricated, will require minimum maintenance and will function reliably. Rising labor costs in most industries, together with the need for high reliability in capital intensive plant has produced a trend to this type of system.

In practice many systems are a mixture of these extreme options resulting in the high initial costs of one and the high maintenance costs of the other.