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Two major Swiss companies announced on Thursday that hundreds of jobs will be laid off. Eastern Swiss construction supplier Arbonia suffers from a decline in construction activity. This is due to historically high construction costs and high interest rates. Thurgau urgently needs to save on costs. And do not know mercy.
A factory has closed. By 2024, 600 employees are expected to lose their jobs. But on Thursday, he said business in Switzerland was unaffected. Arbonia wants to save 12 million francs a year with this. Radiator production moved from Belgium to the Czech Republic. The savings here: 4 million per year. Layoffs: 70 workers.
But savings are also popular in the industry. For example, at Rieter, the spinning machine manufacturer from Winterthur ZH. Incoming orders fell by 63 percent to 325 million francs in the first half of the year. There does not appear to be a rapid recovery. As a result, 100 people lost their jobs at the Winterthur headquarters, which had 580 employees. In Germany, 200 employees will soon be on the street – Rieter wants to save 80 million francs a year. Alarm bells are ringing: The company cannot ignore the layoffs of 400 to 600 more.
Is this just the beginning?
Are other industrial companies getting under the wheels too? What about construction suppliers like Geberit, Forbo or Zehnder? ZKB analyst Martin Hüsler said, “Other measures cannot be ignored due to the cooling economy. Higher interest rates and cost inflation lead to lower investment incentives, especially in residential constructions.» According to the expert, a longer period of drought could lead to measures such as short-time work, interruptions in temporary jobs and eventual downsizing or factory closures.
construction industry weakens
For Matthias Geissbühler, Raiffeisen Investment Manager, this is clear: “Large interest rate increases have led to an economic slowdown. It particularly affects industrial companies like Rieter.” They would benefit from full order books for a long time. “But they’ve been emptied. Now some companies are under pressure,” he tells Blick.
Suppliers in the construction sector are particularly feeling the effects of the weakening European construction sector. “Arbonia also suffers from this, as current austerity measures show,” says Geissbühler. Property prices fell, especially in Sweden and Germany. There is less construction.
Geissbühler: “More companies will lay off workers. Unemployment will increase in the coming months. However, I do not expect large-scale layoffs.” Firms are reluctant because it is still very difficult to find qualified personnel.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
