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The screw of the Swiss industrial machine is shaking. The machinery, electrical and metal sector (MEM) has had a difficult year. But the screw hasn’t fallen yet. But he urgently needs someone to put him back in his place. Industry association Swissmem is aware of this and is pointing the finger at politicians.
8.4 percent decrease in orders and 2.6 percent decrease in exports. “Skidmarks,” as Swissmem director Stefan Brupbacher (56) called them at the annual media conference on Thursday. These are figures that harm industry unity. Only the full filling of order books at the beginning of 2023 prevented an even more serious decline in sales. However, in the second half of the year, many industrial companies had to announce mass layoffs.
The reasons for the negative development are quickly found. Stagnation in almost all major sales markets is causing problems for Switzerland. And then there is the franc, which is too strong for many exporters’ tastes. “Many people say the high franc is half as bad. From a business perspective, I have to say: This is a real and big problem for companies,” emphasizes Swissmem President Martin Hirzel (53).
Tech industry needs strong framework conditions
Hirzel then sent clear words to officials. “Our companies can only remain successful in Switzerland if politicians support them.” Market access and appropriate framework conditions are required. It specifically touches on negotiations with the EU.
Four-fifths of the goods produced by Swiss industrial companies are exported. 57 percent of these go to EU countries. According to association representatives, politicians need to work intensively on Binary III. It is also extremely important to conclude free trade agreements with India and Mercosur, the South American economic organization. Swissmem believes that the agreement with China must be expanded to remain competitive.
What happens if not?
It is noteworthy that there is no peace, joy and observation environment in the industrial sector. Sentences such as “the situation is fragile” and “further business development is difficult to assess” underline this. However, Swissmem director Stefan Brupbacher makes a cautiously optimistic prediction: “We could hit bottom in the middle of the year.” After that, things might go downhill again.
However, it is too early to announce spring. Companies have to eat hard bread in the first half of the year. 37 percent still expect orders to decline. A loose screw requires a screwdriver, i.e. policy.
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.
