(04.06.2025) Switzerland’s machinery, electrical equipment, and metals (MEM) industries are struggling to regain momentum. In the first quarter of 2025, total revenue declined by 3% year-on-year, while orders remained flat (–0.3%), according to the umbrella association Swissmem.
Despite this, sector exports edged up slightly in Q1 2025, reaching a total of CHF 17 billion (+0.7%). Shipments to Asia slowed significantly, while exports to the United States (+5.3%) and the European Union (+0.8%) rose. However, this uptick occurred before the White House announced new trade barriers.
Swissmem also highlighted stark differences between subsectors. Precision instruments (+4.5%) and electrical/electronic engineering (+1.4%) recorded year-on-year export growth, whereas mechanical engineering (–2.9%) and metalworking (–1.6%) experienced declines.
Amid geopolitical tensions and ongoing economic uncertainty, sentiment across MEM companies remains downbeat. Only 24% expect international orders to rise over the coming year, while 32% foresee a decline – seven points higher than at the end of 2024.
In response, Swissmem is urging policymakers to adopt business-friendly measures. Its proposals rest on two pillars: expanding free trade agreements to stimulate global demand for Swiss products, and extending short-time work benefits from 18 to 24 months to help firms weather downturns without resorting to layoffs.
Last modification 04.06.2025
