(31.05.2023)The tech industry (machinery, electrical equipment, metals, and related branches) remains in good shape, with a 4.9% increase in revenue in the first quarter on a year-on-year basis. However, the sector's outlook remains uncertain, according to the Swissmem industry association.
With a capacity utilization rate of 89.5%, production remains robust and above the long-term average (86.2%). However, order intakes recorded a decline of 4.8% compared to Q1 2022.
Demand from global markets, particularly from the United States (+3.4%), Asia (+3%), and the European Union (+2.9%) remains abundant and reached a value of CHF 18.4 billion (+2.8%) in Q1 2023. The sectors with the highest demand in terms of exports are machinery construction (+6%), electrical engineering and electronics (+5.4%), and precision tools (+1.2%).
The metals industry (-5.7%) was particularly affected by the surge in energy prices and experienced a significant decline.
Despite relatively strong overall growth, companies in the sector are struggling to improve their financial situation. Nearly one in five companies (18%) recorded a negative pre-tax margin, while over a quarter of them (27%) have a margin of less than 5%.
Furthermore, industry representatives expect a tightening of the economic situation in the coming months. The reasons cited are the restrictive monetary policies adopted by major central banks, as well as geopolitical tensions between China and the United States or the war in Ukraine.
Last modification 31.05.2023
