WATER STORAGE TANK TOTAL COST OF OWNERSHIP

Download the TCO Program     June 19, 2007 Press Release    Philadelphia Suburban Water Supply Case Study

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, significant renovation costs, and routine maintenance costs are contemplated for welded steel, bolted steel, and concrete tanks in this powerful tool.

"The life expectance 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 the available industry information and the expert opinions of industry professionals to assist owners and engineers in this critical task," says Kevin Gallagher, P.E., Vice President - Sales of Caldwell Tanks, Inc., and former Chairman of STI/SPFA's Field Erected Tank Section.

"We have compiled coating system life expectancies for the commonly used American Water Works Association D102 tank systems.  The NACE documents from Corrosion 06 and Corrosion 98, along with industry experience, provide the source.  Further, advances in coating 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 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 solutions."

If you have questions or problems downloading the TCO Program, please contact Kevin Kroll at STI/SPFA at 847/438-8265 ext. 222 or kkroll@steeltank.com.

This resource was developed by a Task Force of the Field Erected Tank Section of STI/SPFA. 

Chairman Chip Stein, Tank Industry Consultants

Kevin Gallagher, Caldwell Tanks

Rich Horn, CB&I

Chuck Travelstead, Brown Minneapolis Tank

Tony Ippolitti, The Sherwin-Williams Company

Jeff Rogg, Corrpro Companies

Steve Meier, Tank Industry Consultants

Chris Melluck, Phoenix Fabricators & Erectors, Inc.

Jay Simpkiss, Phoenix Fabricators & Erectors, Inc.

Leslie Scott, CB&I