(04.12.2024) The machinery, electrical equipment, and metal industries (MEM sector) face a period of uncertainty. Revenue fell by 4.2% year-on-year during the first three quarters of 2024, according to Swissmem.
The decline continued into the third quarter (-2.4% year-on-year). Following alarming results between April and June, order intake slightly recovered (+6.7%) from July to September 2024. Capacity utilization struggled at 82.9%, well below the historical average of 86.2%.
The global slowdown has also hit exports, which dropped in both Q3 (-2.5%) and the first nine months of the year (-3.6%).
Sales in Germany, the sector's largest market, plunged by 8.4%, with similar declines in Italy (-7.2%), Austria (-5.0%), and France (-1.1%). The U.S. (+3.1%) and Asian (+0.6%) markets, however, offered glimmers of hope.
MEM industry representatives, who export 80% of their output, report a bleak outlook. One-third (33%) of companies expect international demand to drop over the next year, up from a quarter (25%) just months ago. Fears of a trade war between the U.S., China, and the EU following Donald Trump’s election are adding to the anxiety.
Swissmem urges authorities to secure market opportunities amid this uncertainty, citing Bilaterals III with the EU, a free trade agreement with India, and renewed negotiations with the U.S. and Mercosur (Argentina, Brazil, Paraguay, Uruguay) as key measures.
Last modification 11.12.2024
