Re-thinking corrosion – from costly challenge to competitive strength

Across Europe’s diverse manufacturing landscape, corrosion remains a critical ‘hidden’ cost. It quietly undermines profitability, challenges operational resilience, and places reputational risk just beneath the surface of everyday production. The economic burden is staggering: according to the Association of Materials Protection and Performance (AMPP), the global cost of corrosion is approximately US$3 trillion each year – nearly 3% of worldwide GDP, and more than 13% of the EU’s GDP.[i] However, a major consideration for today’s manufacturing community, is that up to US$875 billion of that can be prevented through better protection, smarter choices, and innovation.

Europe is at the forefront of this challenge, sitting against a backdrop of growing regulatory expectations, and the urgent need for sustainable growth. A new Cost of Corrosion report from our powder coatings’ brand, Interpon, surveyed 1,000 manufacturers across architecture, automotive, EVs, industrial, agricultural and construction equipment (ACE), and functional sectors in Europe, North America, and South Asia & Australasia. The findings show that for Europe’s manufacturers, regulation is not a barrier but a catalyst for innovation and competitive edge.

This article explores how regulation breeds innovation, how sectoral nuances impact strategies, and how manufacturers are reframing corrosion protection as an enabler of long-term business success.

The true cost of corrosion

The impact of corrosion extends far beyond individual product replacement costs. Consider that around 40% of global steel production exists purely to replace corroded product, a cycle that contributes about 3.2% of global CO₂ emissions. Corrosion drains industry of resources, chips away at customer trust, and shortens the lifecycle of everything from buildings to vehicles and home appliances.

For European manufacturers, the costs are felt on multiple levels. Survey data reveals 33% of European manufacturers cite financial impacts such as product returns and lost customers as their top concern; 25% point to greater environmental costs from premature replacement and waste, while 24% highlight reputational risk linked to failed performance.

These far-reaching costs mean that corrosion protection must be treated as a strategic priority and not simply a maintenance concern. The strategic value in corrosion protection is influencing 43% of European manufacturers, the highest proportion globally, that choose their protective coatings to ensure innovation in their manufacturing processes. This suggests recognition that corrosion protection should add value and help deliver differentiation.

Regulation as a key driver in Europe

European manufacturers, and those importing to the EU face some of the world’s most stringent regulations governing product durability, safety, and sustainability. Recent frameworks – such as the Carbon Border Adjustment Mechanism (CBAM) and the Ecodesign for Sustainable Products Regulation (ESPR) – demand not only robust corrosion protection, but also longer product lifespans, recyclability, and verified sustainability credentials.

Such regulatory changes are not simply constraints, they stimulate continuous improvement, push investment into new chemistries, drive better environmental outcomes, and, crucially, mean European manufacturers compete globally on quality and sustainability.

One element of how European manufacturers compete is through their selection of coatings. While this can be influenced by regulation, selection still differs across key sectors.

How sector specifics guide coating choices

Automotive

European car makers are tightening durability and sustainability standards in ways that cascade stricter requirements through every tier of their supply chain. Notably, while 24% of automotive respondents say sustainability is already a driver for coatings selection; twice that proportion (46%) expect it to be the most important factor in the future. EV uptake is turbocharging further innovation, with powder coatings valued by 52% of EV manufacturers for robust corrosion protection, and the dual benefits of thermal management and electrical insulation.

Functional

Few sectors face the breadth of challenges seen in functional equipment (such as pipes and valves) expected to survive decades of moisture, chemicals, and temperature extremes. With the growth of Europe’s urban infrastructure and electrification of transport, demands and compliance pressures for advanced coatings performance are higher than ever. Coatings are expected to deliver long-term resistance to corrosion as well as other functionality such as insulation and thermal management. Indeed, over three-quarters (79%) of functional manufacturers report that their corrosion protection needs are too varied to be addressed by any single technology, underlining demand for multifunctional solutions.

Industrial

In the industrial sector, corrosion protection is closely linked to productivity and efficiency. Half of manufacturers (50%) use powder coatings, with durability (54%) and manufacturing efficiency (51%) the main drivers behind coating choices. Barriers to change remain, with a quarter of respondents (25%) citing the cost of adapting existing production lines. Recent innovations are helping to bridge this gap, including single-coat powder coatings that deliver high corrosion protection of up to C4 environments. These advances allow manufacturers to align efficiency goals with higher durability standards, particularly in high-volume applications such as HVAC units, domestic appliances, office furniture, and warehouse systems.

Regulation breeds innovation

Europe’s strict regulatory landscape acts as an incubator for coating innovation. Each tightening of required standards triggers advances in technology and manufacturing practice. CBAM will apply a carbon price to imports of high emission materials such as steel and aluminum, affecting both non-EU exporters into the EU and EU manufacturers that rely on imported inputs. ESPR, meanwhile, requires greater durability, repairability and recyclability for any product sold in the EU, regardless of where it is produced. Together, these frameworks raise expectations for coating performance and product lifespans, since durability directly reduces replacement cycles and enhances environmental performance.

This, in turn, drives innovation – such as the Interpon Redox range, delivering long-lasting corrosion protection even in ‘C5’ environments, including Interpon Redox One Coat that achieves up to C4 protection in a single layer; a new generation of zinc-free, BPA-label-free solutions within the Interpon A1000 powder coating range dedicated to coil springs; and high-edge-coverage technology within Interpon ACE for agricultural and construction equipment.

Further innovations across super- and hyperdurable Interpon D powder coating solutions for the architectural market deliver long-lasting performance, extending product lifecycles and reducing maintenance cycles to help manufacturers demonstrate their sustainability credentials. Together, these coating advancements further support customers in meeting evolving performance demands and regulatory expectations.

Far from stifling competitiveness, the link between regulation and innovation enables manufacturers to make sustainable choices with no compromise on performance. This belief – that sustainability and performance must go hand in hand – underpins our value driven sustainability approach and reflects how we help customers to own their impact.

The sustainability imperative

Sustainability is rapidly rising as a procurement criterion for corrosion protection. Indeed, survey data shows that 35% of European manufacturers believe it will become the key buying factor for coatings – a figure set to climb as both regulation and demand for sustainable solutions intensify.

Customers and end-users are increasingly demanding transparency around sustainability claims. For manufacturers, the ability to demonstrate lower embodied carbon, reduced waste, and compliance with evolving EU regulations is now central to maintaining brand value and market access. This emphasizes the importance of third-party verification, such as Environmental Product Declarations (EDPs), that independently verify a product’s sustainability credentials.

Unlocking the opportunities of upgrading coating technologies

Upgrading to advanced coating technologies presents significant opportunities for manufacturers aiming to stay ahead in a competitive market. Innovative solutions, such as high-performance powder coatings, mean companies can achieve longer-lasting corrosion protection, improved operational efficiency, and measurable sustainability gains. Enhanced coatings help reduce maintenance costs, extend product lifespans, and deliver superior durability – directly supporting customer satisfaction and brand reputation. Additionally, these innovations allow manufacturers to meet evolving procurement and regulatory demands, strengthen their position in global supply chains, and showcase leadership in environmental responsibility.

Conclusion

Corrosion protection is no longer an afterthought or maintenance cost. It stands at the heart of operational excellence, regulatory compliance, competitive advantage, and brand trust. By viewing regulation as a springboard for innovation and sustainability, European manufacturers are not just keeping pace with global expectations, they are also helping to raise the bar.

With the right strategies and partners, the cost of corrosion is being transformed, from a drain on resources to a source of new value. Those who invest early and own their impact will be best positioned to thrive as leaders in Europe’s next-generation manufacturing economy.For deeper insight into what is driving corrosion protection across the globe, explore Interpon’s full Cost of Corrosion report.

[i] https://european-union.europa.eu/principles-countries-history/facts-and-figures-european-union_en

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