WATER STORAGE TANK TOTAL COST OF OWNERSHIP ANALYSIS

The Steel Tank Institute / Steel Plate Fabricators Association (STI/SPFA) is pleased to offer its Total Cost of Ownership tool to the water storage tank industry.  The tool is the Association’s response to industry demand to quantify the Net Present Value of storage tank ownership.  The concepts of initial cost, replacement costs, significant renovation costs and routine maintenance costs are contemplated for welded steel, bolted steel and concrete tanks in this powerful tool. 

“The life expectancy of a properly cared for steel water storage tank is truly unlimited.  In fact, STI/SPFA honors tanks that have been in service for over 100 years through its Century Club.  Attempting to quantify the total cost of ownership, in present value, and evaluate water storage tank options is a major undertaking.  We have compiled available industry information and the expert opinions of industry professionals to assist owners and engineers in this critical task,” says Kevin J. Gallagher, P.E., Vice President – Sales of Caldwell Tanks, Inc. past Chairman, STI/SPFA Field Erected Tank Section. 

“We have compiled coating system life expectancies for the commonly used American Water Works Association D102 systems.  The NACE documents Corrosion 06 and Corrosion 98, along with industry experience provide the source.  Further, advances in coatings system technologies make it probable that the systems will provide an even longer service life,” says Tony Ippolitti, Senior Corrosion Engineer for Sherwin-Williams Company.

"If tank owners and their consultants are truly honest with themselves and use industry average costs and other reasonable factors in their evaluations, the lowest total cost of ownership for a long term water storage tank solution will be a welded steel storage tank for most cases,” says Rich Horn, Sales Manager for Chicago Bridge & Iron.  “Despite some of the marketing propaganda for other materials, there is no such thing as a ‘maintenance free’ water storage tank - irregardless of the construction materials. With periodic inspection and some maintenance, welded steel water storage tanks can and have operated for well over 100 years under normal operating conditions. Welded steel should be the material of choice for most water storage tank solutions."

The tool is provided at the following link CLICK HERE TO DOWNLOAD THE TCO PROGRAM. 

Please follow the instructions on the download page, which require a current version of Microsoft Excel.  

This tool was developed by a task force of the Field Erected Tank Section of STI/SPFA.

Chairman,Chip Stein, Tank Industry Consultants.
Kevin Gallagher, Caldwell TanksI
Rich Horn, CB&I
Chuck Travelstead, Brown-Minneapolis Tank Co.
Tony Ippoliti, The Sherwin-Williams Company
Jeff Rogg, Corrpro Companies Inc.
Steve Roetter, Tank Industry Consultants
Steve Meier, Tank Industry Consultants
Chris Melluck, Phoenix Fabricators & Erectors Inc.
Jay Simpkiss, Phoenix Fabricators & Erectors Inc.
Leslie Scott, CB&I