MEM industries: uncertainty grows despite good results

Three barrels in a shed.

(14.09.2022) The mechanical, electrical engineering and metals (MEM) industries are concerned about the coming months. While sales rose by 12.1% in the first half of the year, rising production costs and energy shortages threaten this growth, according to the latest report from the Swissmem organization.

Exports generated sales of CHF 36.5 billion, which is 9% higher than in the first half of 2021. However, this growth has weakened to some degree year-on-year (the growth rate was 15.7% in the first half of 2021).

Compared to the same period last year, the number of people employed in the sector (320,900) has increased by 2.4%. At the same time, the volume of orders has been growing at a positive rate for the past three half-years and has exceeded its pre-pandemic level by almost 30%.

Despite these encouraging figures, MEM industries are preparing for a period of uncertainty: supply problems as well as rising energy and raw material prices have already driven up production costs significantly.

This situation is likely to continue given the energy crisis that is looming this winter, with almost 30% of Swissmem member companies expecting a decline in foreign orders (+12% compared to the first quarter of 2022). Some companies are also concerned that they will have to suspend operations in the event of an energy shortage.


Last modification 14.09.2022

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