Ocnus.Net
News Before It's News
About us | Ocnus? |

Front Page 
 
 Africa
 
 Analyses
 
 Business
 
 Dark Side
 
 Defence & Arms
 
 Dysfunctions
 
 Editorial
 
 International
 
 Labour
 
 Light Side
 
 Research
Search

Business Last Updated: Mar 6, 2017 - 11:07:40 AM


Half of Swiss manufacturers plan to move abroad
By Swis Info Feb 28, 2017
Mar 6, 2017 - 11:06:37 AM

Email this article
 Printer friendly page

Cost pressure has led Swiss manufacturers to consider moving outside Switzerland

Nearly half of Swiss industrial companies plan to escape the strong franc by moving at least parts of their manufacturing production abroad, according to a survey by lobby group Swissmem.

The franc has increased in value against the euro and dollar ever since the Swiss National Bank (SNB) ended its policy of printing huge amounts of local currency in January 2015. As a result, 57% of firms in the electrical engineering, fine tools and machine building industries have seen margins erode to unsatisfactorily low levels or even negative territory.

Swissmem’s survey external link, conducted together with the University of St Gallen, found that 46% of firms plan to move production abroad within the next three years.

“The main reason for this is to reduce production costs. Apart from product and process innovation, this is the only way in which businesses can increase their profitability in Switzerland,” Swissmem said in a press statement.

The survey also predicted a decrease in manufacturing jobs and an increase in research and development activities in Switzerland. Some 12,600 manufacturing jobs have been lost in Switzerland in the last two years, according to Swissmem.

This is not the first time that the manufacturing production drain has come to light in Switzerland. Last year, research from Lausanne’s Federal Institute of Technology (EPFL) found that Swiss companies are investing more heavily abroad.

The proportion of investment outlay spent abroad rose from 45% to 63% in the year after the SNB pulled the plug on its franc defence programme, the study found.

The phenomenon has also caused concerns among trade unions and at ministerial government level.


Source:Ocnus.net 2017

Top of Page

Business
Latest Headlines
Trade body says English courts should rule on European swaps after Brexit
Protests break out on China-North Korea border over new sanctions
Unlikely Partners: Chinese Reformers, Western Economists and the Making of Global China
Euro zone May industrial output falls more than expected
Kyiv slams Moscow after it closes Kerch Strait to build a bridge between Russia and Crimea
Arctic Ocean Thaw Boosts Russian Shipping as Old Ice Blows West
Germany's New Power of the Purse
The Scottish wind-power racket
Sweden predicted to be a cashless society by 2030
Watershed moment for African Internet: Installation of first direct subsea link between Africa and South America begins in Angola