Annus horribilis for MEM industries – digitization offers good prospects

In 2015 a further massive overvaluation of the Swiss franc led to a considerable decline in new orders received (-14%) and sales (-7%) for the Swiss mechanical and electrical engineering industries (MEM industries). Even more dramatic was the deterioration in margins, which plunged many businesses into the red. Companies were therefore compelled to act quickly after the scrapping of the euro peg. This triggered an accelerated structural transformation that will continue to leave its mark in 2016. However, if exchange rates and business trends do not worsen any further, a recovery in the MEM industries is likely in the medium term. Industry digitization is a particular source of new growth opportunities. The government can also contribute to positive development. What is needed is to retain the bilateral agreements, to conclude new free trade agreements, to exercise absolute restraint in terms of intervention in the liberal job market and, not least, to halt any new financial burdens and regulations.