The Swiss tech industry (mechanical and electrical engineering industries and related technology sectors) is now reporting nine consecutive quarters of declining sales compared to the prior-year period. The business trend in the second quarter is particularly worrying: within three months, order volume dropped by 13.4% – it is worth noting that this occurred before the announcement of the horrendous 39% US tariffs. Capacity utilization within companies came to 80.9% in the second quarter, well below the long-term average of 86.2%. At 324,600, the number of employees in the tech industry declined by 3,100 persons in the second quarter.
Exports in the tight grip of China's weakness and US tariffs
Goods exports of the Swiss tech industry in the first half of 2025 were below the prior-year level (-0.9%). This is mainly due to the weak development of exports to Asia (-7%), with China strikingly negative (-16.8%) Exports to the EU stagnated (-0.1%), and those to the US rose slightly (+1%). However, over the course of the six-month period, the minus/plus signs were completely reversed in trade with the US. Whereas exports in the first quarter rose sharply, compared with the prior-year period (+5.3%), they slumped in the second quarter (-3.1%) after the threat of tariffs.
Swissmem Director Stefan Brupbacher is deeply concerned: “The political uncertainty impacted heavily on demand for investment goods in the second quarter. We are currently in a dangerous downward spiral, and the knock-on effect is being accentuated by the US tariffs. This is a dramatic situation for the affected companies, employees and regions.”
Tech industry caught between a fighting spirit and crisis plans
Swissmem conducted a survey of its member companies after 7 August. The results show that the primary negative factors are the strong franc and generally weak demand. These are followed by regulatory pressure and the fall-off of the US business, which underscores the significance of this market. The biggest negative factor, however, is the cumulative effect of the 15 negative factors: 70% of companies view the overall impact as considerable to very heavy.
Despite the difficult situation, the tech industry companies are still battling on. 83% of the companies want to develop new markets, and 62% want to establish new business areas. “This shows the spirit of the Swiss technology industry. The companies are not complaining, but looking for new ways in future”, Martin Hirzel, President of Swissmem, emphasizes. But a large number of companies are planning incisive measures such as dismissals (38%), transferring operations to the EU (31%) or short-time work (28%). “We are in a delicate phase. Many companies are gearing up for streamlining and transfer plans. Dismissals are inevitable. How many there will be depends on how quickly politicians can defuse the US tariff of 39%. In Switzerland, they must absolutely reduce the costs for industry.”
Petition to the Federal Council and parliament: genuine support instead of new burdens!
The Federal Council and parliament are now under pressure to lower the overall burden for companies. The survey results highlight that less bureaucracy and a halt to new regulations are urgently needed. In addition, there must not be any additional levies. This affects non-wage labour costs, among other things. Moreover, parliament has the means to increase the duration of short-time work to 24 months, in its autumn session. This could prevent mass layoffs. Furthermore, the revision of the War Materiel Act must be completed. This is the only way to safeguard the armaments industry in Switzerland and ensure Switzerland's security.
Political parties, NGOs and associations must make a contribution by foregoing referendums against new and updated free trade agreements. Furthermore, the bilateral agreements with the EU now take on even more importance. We need good, stable relations with our main trading partner. The process to complete the Bilaterals III must therefore be accelerated. Martin Hirzel emphasizes: “Companies now need time and financial resources to make adjustments. They can gain time through the extension of short-time work compensation. And financial resources will be released via lower location costs.”
US tariffs: Strengthen the Swiss export industry now!
For further information please contact:
Noé Blancpain, Member of Management and Head of Communications & Public Affairs
Tel. +41 44 384 48 65 / mobile +41 78 748 61 63
E-mail n.blancpainnoSpam@swissmem.ch
Philippe Cordonier, Member of Management and Head of Swissmem Romandie
Tel. +41 44 384 42 30 / mobile +41 79 644 46 77
E-mail p.cordoniernoSpam@swissmem.ch