Switzerland's industry Switzerland: Accelerated Structural Change
The strong Swiss franc is making life difficult for the country's export-focused engineering, electrical and metal industry. Order books have shrunk by 14% since the start of the year. Exports have reduced by just under 4%. An increase of 7% in export sales to the USA helped made up for the drop in 5.7% drop in exports to the EU.
The situation is unlikely to ease any time soon. The hugely overvalued franc has set in motion accelerated structural changes in the industry. Many companies are questioning whether the current climate in Switzerland is allowing any industrial activities to be run at a profit. In particular, activities with little added value are increasingly being relocated abroad. This has led to the loss of some 4500 jobs in the engineering, electrical and metal industry in 2015.
The tough situation is forcing companies to be more innovative and productive.