(10.09.2025) The Swiss tech industry (machinery, electrical equipment, metals, and related technology sectors) is going through a difficult period. In the second quarter of 2025, order volumes fell by 13.4% compared with the previous quarter, according to the industry association Swissmem.
The sector’s sales have been declining for nine consecutive quarters. In the second quarter of 2025, capacity use stood at 80.9%, well below the long-term average of 86.2%. Employment contracted by nearly 1% – equivalent to 3,100 fewer jobs – compared with the previous quarter.
Exports from the sector fell by 0.9% year-on-year during the first half of 2025, mainly due to a sharp drop in sales to Asia (-7%), especially China (-16.8%). The European market remained stable (-0.1%), while shipments to the United States rose by +1% over the half-year, though with notable differences between the first quarter (+5.3%) and the second (-3.1%). Swissmem fears these figures may reflect the first effects of tariff threats raised by Washington, particularly since the decline occurred before the announcement and entry into force of the 39% tariffs.
According to a survey conducted on 7 August 2025, 70% of companies consider their overall burden to be significant or very significant. The main difficulties reported by employers include the strong franc, weak demand, regulatory pressure, and declining activity in the United States.
In addition, 37% of companies surveyed indicated they were considering job cuts, 31% relocating to European Union (EU) countries, and 28% introducing reduced working hours. According to Swissmem, redundancies are now inevitable, but the scale of the phenomenon can still be mitigated if policymakers succeed in renegotiating the U.S. tariffs.
Last modification 10.09.2025
