Fact – Every last penny-worth of heat paid for is lost to the atmosphere.
Fact – insulation, properly fitted/applied reduces the rate of heat loss (and therefore the amount of heat required to maintain a given temperature, thus reducing running costs).
Fact – Insulation, without heat input, will not warm anything.
Fact – If temperature drops below the dew point, condensation will result and water vapour in the air will settle on cool surfaces.
Fact – Dehumidifiers reduce the dewpoint temperature, but may not increase the temperature (proper sizing is important).
Fact – Air changes (draughts or ventilation) will increase the cost of running a dehumidifier (unless the outside air is drier than that inside!).
The above make it abundantly clear that a warm, dry, draught-free atmosphere is the requirement for avoiding condensation. Rusting will take place veeerry slowly if water vapour, oxygen and steel are present and it is accelerated by increased temperature, but condensation of water vapour onto the surface will increase the rate of rusting by several orders.
Insulation is an up-front cost, but heating costs are on-going. It is common sense to insulate our houses rather than face huge heating bills, so the same can beapply for heating a garage or workshop. It is likely very much more environmentally friendly too, to insulate rather than use far more electricity (high grade energy) to achieve the same result.