Orders up for SMEs in the MEM industries
(09.03.2022) Indicators for the Swiss mechanical, electrical and metal industries (MEM) are positive. Almost two-thirds of the companies surveyed by the trade association Swissmechanic expect an increase in orders in Q4 2021.
Following a very strong end to 2021, the Swissmechanic Business Climate Index reached a new peak in January 2022. Of the companies surveyed, four out of five reported that business conditions are generally positive for them. This is better than it was in October 2021.
Industry data shows that 69% of the companies surveyed reported higher revenues in Q4 2021 and that over 50% of them reported higher margins compared to the same period last year. Export values, however, remain below the peak reached in summer 2021. Capacity utilization nonetheless remains extremely high at 94%, exceeding the pre-pandemic period.
MEM industries are also following a positive trend in the employment market. Most of the companies surveyed indicated that they will expand their workforce in the medium term.
While MEM industries are doing well, supply issues are a concern. This is a major challenge for 62% of the companies surveyed. All eyes are on China and the impact of its "zero-COVID" policy, according to Swissmechanic. Labour shortages and the strong franc also constitute risks for manufacturers.