American Shim Manufacturing

Why American-Made Shims Actually Cost Less

Shims may look tiny and basic, but they tell us a lot about why American manufacturing is coming back strong. A newer study shows that 96% of CEOs actively plan to bring their offshore operations back home or have already done so. U.S. manufacturing output dropped for decades. Now we’re seeing production numbers climb steadily since 2020. This change isn’t about waving the American flag – companies are doing the math and American-made products make financial sense.

Manufacturing economics look completely different today than they did ten years ago. Old calculations don’t work anymore. Moving goods across borders costs way more now. Chinese import duties have shot up on products worth hundreds of billions. These tariffs have wiped out any savings manufacturers once got from offshore production. The choice to make shims in America isn’t about patriotic feelings – it’s about survival and smart business.

I’ve watched this change happen firsthand. We face a clear choice now. We can keep chasing cheap labor around the globe like “manufacturing gypsies,” or we can build stronger, clearer, and safer supply chains here at home. This piece shows why American-made shims actually cost less when you add up everything, not just the price tag. Tariffs, quality standards, protecting intellectual property, and stable supply chains make a strong case to bring these crucial components back home.

Why Shim Manufacturing Moved Overseas

The industrial revolution changed global manufacturing and created a business model where companies found outsourcing to cheaper labor markets more attractive. American manufacturers started by moving production to areas with lower costs within the country. They expanded internationally when better transportation and communication made global operations possible.

The lure of low labor costs

Large corporations started moving manufacturing offshore during the 1960s and 1970s when they found that there was a dramatic reduction in expenses by shifting production to lower-cost countries. The numbers made perfect sense—Chinese labor costs were just one-third to one-quarter of American wages. Mexican labor expenses were nowhere near U.S. rates, costing only one-eighth as much. Companies saved 30-50% on labor costs, which easily made up for extra transportation, duties, and broker expenses. General Electric led this offshore movement, and many manufacturers followed their example.

Globalization and trade policy shifts

Trade agreements like NAFTA and Mexican Maquiladoras opened new opportunities for American companies to produce goods internationally. Mexican maquiladora jobs grew from about 200,000 in the 1980s to over 1 million by the late 1990s. China joined the World Trade Organization in 2001, which sped up this trend. This led to 3.7 million U.S. workers losing their jobs by 2018, with 2.8 million of these in manufacturing.

How shims and other small components were affected

Small precision components like shims moved overseas easily, especially when you have offshore manufacturers with good supply chains and raw material access. Companies kept control of their operations while saving on overhead costs. These offshore locations also offered skilled workers and specialized machinery at lower wages. The savings were too good to ignore for small components that needed lots of labor. Companies could cut prices or make better profits while keeping their quality standards high.

The Hidden Costs of Offshore Shims

Offshore shim manufacturing seems cheaper at first glance, but hidden costs often wipe out these savings. These extra expenses don’t show up on purchase orders but affect the bottom line by a lot over time.

Shipping delays and long lead times

Shipping shims from overseas creates major business disruptions due to long transit times. Delays happen often because of port congestion, customs problems, and bad weather. These holdups can last weeks or months and seriously disrupt production schedules. Logistics experts suggest companies should add buffer days to their schedules, especially during busy seasons when roads and ports get more crowded than usual. A small paperwork mistake can cause big delays at customs, making wait times even longer.

Quality control and rework expenses

Poor quality is another huge hidden cost of making shims overseas. Studies show that quality problems abroad have pushed many big companies to bring manufacturing back home. These costs pile up faster – nobody wants quality issues because they waste time, money and can hurt your reputation. On top of that, it puts both product performance and brand image at risk. Many companies need detailed inspection processes to work, including production audits and quality checks before shipping.

Tariffs and unpredictable trade policies

Trade policies have moved in ways that make costs hard to predict. New tariffs can pop up anytime and might hit goods already on ships. The overall import tax has reached levels we haven’t seen in almost 100 years. These tariffs boost the taxable amount for sales tax and make use tax harder to figure out. Uncertainty in global trade leads to supply chain problems, higher shipping costs, and shortages that stretch production times.

Intellectual property and design theft

Putting an ocean between your operations and manufacturer creates big IP risks. Many overseas manufacturers turn into “opportunists” who might copy your business model and IP. Some have even registered their clients’ trademarks as their own, blocking the real owners from selling their branded products. These IP fights can drag on for years and cost hundreds of thousands to solve the problems, sometimes without success.

Why American-Made Shims Are Actually Cheaper

American-made shims provide better value compared to seemingly cheaper offshore alternatives. Most companies base their sourcing decisions only on price. This leads to a 20 to 30 percent miscalculation of actual offshoring costs.

Lower total cost of ownership

The original price tag makes up less than 10% of the total equipment cost over its lifetime. Energy costs, maintenance, and repair fees are five times more important than upfront costs. Companies can compare options “apples to apples” by calculating total cost of ownership (TCO). This reveals that American shims end up costing less.

Faster delivery and reduced inventory needs

Domestic manufacturers process orders within 24 hours. Overseas shipments face delays of 7-10 business days minimum. Ocean freight takes 6-9 weeks while domestic tools have no freight time. This quick delivery eliminates expensive inventory stockpiling.

Better quality and fewer defects

Offshore tools often sacrifice quality for speed and cost. Quality issues multiply as complexity increases and require extra time and money for corrections. Domestic shims maintain consistent quality through proper materials and manufacturing processes.

Improved communication and design iteration

Good communication between management and floor staff prevents excessive scrap and poor product quality. Industry consultants suggest better communication could boost a company’s bottom line by over 10%. Clear channels make rapid problem-solving easier and minimize errors and accidents.

Reduced ESG and compliance risks

Large companies have adjusted their ESG strategies by 80%. American manufacturing makes it easier to comply with environmental regulations and avoid potential tariff surprises in this ever-changing regulatory landscape.

How American Shim Manufacturers Compete on Cost

U.S. manufacturers have created innovative ways to compete globally in shim production despite rising costs. The evolving manufacturing scene has opened new doors for domestic producers to succeed through better technology and operational excellence.

Investing in automation and lean processes

American shim makers now use Single-Minute Exchange of Die (SMED) systems that cut equipment changeover times by up to 94%. This method turns most changeover steps into external processes while equipment keeps running, which streamlines operations. Companies that use lean manufacturing boost their productivity by at least 20%. These upgrades reduce costs by cutting downtime and help create smaller, more responsive production runs.

Designing shims for efficient production

U.S. manufacturers have reimagined shim design to make production more economical. They now offer peelable laminated shims that adjust precisely without expensive machining. Some use state-of-the-art manufacturing techniques like CNC laser cutting and water jet technology to get the most from materials. Through reverse engineering and careful material selection, U.S. producers create custom solutions that work better than generic imports.

Building local supplier networks

A resilient domestic supply chain gives manufacturers key advantages. U.S. companies deliver shims within 24 hours, which eliminates the need to stockpile excess inventory. Many now provide JIT delivery systems and Kan Ban inventory management. These local networks cut transportation costs and make supply chains more reliable.

Highlighting ESG and sustainability advantages

ESG factors shape purchasing decisions more than ever. About 80% of large companies have updated their ESG strategies because of new regulations. Smart shim manufacturers now seek third-party sustainability certifications to prove their dedication to ethical production. The aerospace industry leads to this change, as manufacturers add digital monitoring systems to track how they use materials and their effect on the environment.

American Shim Manufacturing

American manufacturing is experiencing a rebirth, especially when you have precision components like shims. The evidence shows that “cheap” offshore options end up getting pricey when businesses look at the complete picture. Many companies still base their decisions on the original price tag. They overlook the 20-30 percent extra costs that offshore production brings. This short-term thinking fails to show the real financial picture.

Manufacturing companies rushed overseas, drawn by labor costs that were sometimes one-eighth of American rates. Trade agreements and globalization sped up this move. The economic equation has changed now. Tariffs, shipping delays, and quality control issues have eaten away the cost advantage of offshore production. Companies must think over intellectual property risks that could destroy their business models.

The total ownership cost reveals the real story. American-made shims’ value surpasses the basic unit price. Quick delivery removes the need for expensive inventory stockpiling that offshore options require. U.S. producers process orders within 24 hours. Overseas shipments face delays of 7-10 business days plus weeks of ocean freight time. Companies can run leaner inventories and react quickly to market needs.

Quality tips the scales toward American production. Offshore manufacturing often cuts corners to save money and time. Product complexity makes these quality issues grow exponentially. U.S.-made shims maintain steady quality through proper materials and processes. Companies avoid costly rework, scrap, and damage to their reputation from poor components.

Clear communication gives another solid reason to choose domestic sourcing. Direct channels between the core team and production staff prevent waste and quality problems. Good communication can boost a company’s bottom line by over 10 percent. Quick problem-solving and fewer errors make this possible. Spreadsheets rarely show this benefit, but it affects profits substantially.

ESG factors make American production even more attractive. Big companies have changed their ESG strategies because of new regulations. U.S. manufacturing makes it easier to follow environmental rules and dodge tariff surprises. These factors matter more to customers and stakeholders every day.

American manufacturers use smart strategies to stay competitive despite global cost pressures. Automation and lean processes boost productivity by at least 20 percent. Lower downtime cuts costs and allows smaller, faster production runs. Many companies now use Single-Minute Exchange of Die systems. They improve efficiency by moving most changeover steps outside the main process.

U.S. producers redesign shims for cost-effective production. Peelable laminated shims allow precise adjustments without expensive machining. Advanced techniques maximize materials and minimize waste. Smart engineering and material choices help create custom solutions that beat generic imports on price and performance.

Local supplier networks create advantages that offshore options can’t match. Strong domestic supply chains enable 24-hour delivery without excess inventory. JIT delivery and Kan Ban inventory systems cut costs further. These local networks reduce transportation costs and supply chain risks that caused problems during recent global disruptions.

The choice between offshore and domestic shim production comes down to understanding real costs versus sticker prices. The initial price tag is less than 10 percent of equipment’s lifetime cost. Energy, maintenance, and repair fees matter five times more than upfront costs. A complete analysis shows American-made shims as the better economic choice.

The return to U.S. manufacturing shows smart business thinking based on today’s economic reality. Companies need to look beyond unit prices to make smart supply chain decisions. This broader view shows that American-made shims cost less while working better, arriving faster, and reducing business risk. The manufacturing scene has changed, and businesses that see this shift will succeed with stronger supply chains built on domestic production.

American Shim Manufacturer

Northern Industrial Manufacturing is America’s premier manufacturer of US made shims. With a reputation for the closest tolerances, highest product quality, short lead times, process innovations, and technical prowess – we can meet your shim manufacturing needs, while exceeding your expectations and delivering your parts on time and on budget.

American Shim Manufacturer: 586.468.2790