Automotive circular economy: 60 percent lower CO2 emissions possible

A study on the automotive circular economy by the consulting firm Bain & Company shows that the sustainable use of materials enables a 60 percent reduction in CO2 emissions.

Automotive circular economy could enable 60 percent reduction in CO2 emissions. (Image: Unsplash.com)
Mobility is currently the cause of around 30 percent of global CO2 emissions. Road traffic accounts for a considerable proportion of these. If the environmental impact is to be minimized over the life cycle of a passenger car, not only emission-neutral drives are needed, but also innovative approaches along the entire value chain. The spectrum ranges from the sustainable design of new models and closed material cycles in production to better utilization of existing vehicles. European automakers currently lead the world in the circular economy with a rate of 40 percent, mainly due to strict EU regulations. In its study "Reuse, Remanufacturing, Recycling, and Robocabs: Circularity in the Automotive Industry," the international management consultancy Bain & Company analyzes the key levers that can be used to advance the automotive circular economy worldwide. It also shows how automakers and suppliers can prepare for the new era.

Nearly complete car recycling possible by 2040

The mobility sector currently accounts for around 10 percent of all raw materials and supplies used worldwide. For European car manufacturers, the proportion of recycled and reused materials in new car production is 23%, but could more than double to 59% by 2040 according to the latest Bain study. This alone would reduce the CO2 emissions associated with the use of materials by 60 percent. At the same time, it is possible to increase the recycling rate of a car from just under 80 percent today to 97 percent - almost all parts of a vehicle would then be reused. "Virtually all manufacturers are currently converting their model range to alternative drive systems," explains Björn Noack, Bain Partner and co-author of the study. "But only if they create closed material cycles at the same time will they actually achieve the ambitious goal of climate neutrality."

Automotive circular economy also offers economic advantages

The Bain study also takes into account downstream stages of the value chain. According to the study, the proportion of used parts for repairs in Europe could increase to 12% by 2040, compared to just 2% in 2020. For batteries in particular, remanufacturing and reuse will become the standard in future in order to meet the strict regulatory requirements. However, this will require professional marketing. "The more intensively car manufacturers commit to the circular concept and the more aggressively they go public with it, the easier it will be for service companies to convince their customers to use used spare parts," says Dr. Klaus Stricker, Bain Partner and head of the global Automotive and Mobility practice group. Around the globe, vehicle manufacturers are reaping several benefits from switching to a circular economy. "Closed loops not only reduce environmental impact, but also increase the resilience of supply chains and reduce material costs in the longer term," says Stricker. "This leads to higher margins and also opens up new earnings opportunities."

Mode of locomotion changes fundamentally

Changes in user behavior will also play an important role on the road to climate neutrality. According to the Bain study, the use of robotaxis is expected to become increasingly profitable in the 2030s. As a result, the share of private vehicles in kilometers driven worldwide will fall from 67 percent today to around 50 percent in 2030. By 2050, this figure is expected to be as low as 40 percent. The overall utilization of all vehicles would therefore increase significantly, while the demand for new vehicles would decrease. "Mobility will remain an essential part of our lives," Bain Partner Noack is certain. "But the way we get around will change fundamentally. This is mainly due to the noticeable climate change, increasing urbanization and a heightened awareness of the environment." He adds: "The future belongs to the automotive circular economy. The sooner manufacturers and suppliers adapt to this, the sooner they will be able to set themselves apart from their competitors."

Cross-divisional cooperation is indispensable

Pioneering companies focus on three measures. Firstly, they systematically review their entire value chain in order to consistently exploit the opportunities for closed loops. Secondly, they are identifying trends at an early stage and setting the course for tomorrow's markets today based on future scenarios. And finally, they are getting involved in ecosystems and starting to develop closed cycles together with partners. As part of the Global Battery Alliance, for example, more than 120 companies and institutions are now working on establishing a sustainable value chain for batteries. Cross-sector cooperation is particularly important. "The automotive circular economy requires manufacturers, suppliers and those outside the industry to work together extensively and in a spirit of trust," emphasizes industry expert Noack. "Those car manufacturers who recognize this are looking very closely at the areas in which their unique position gives them an edge and where cooperation is particularly advantageous for them. In this way, they are ideally equipped for future competition." Source: www.bain-company.ch The post Automotive circular economy: 60 percent lower CO2 emissions possible appeared first on Organizer.

Dipl. Marketingmanager: New framework curriculum approved

The new framework curriculum for the training to become a marketing manager has been approved.

SERI has approved the new framework curriculum for the diploma in marketing management. (Image: zVg, HFMK, SIB)

The State Secretariat for Education, Research and Innovation SERI has approved the new framework curriculum for the course "dipl. Marketingmanager/ dipl. Marketingmanagerinnen". The revised course content is classified at competence level NQF 6 and prepares students for today's requirements in professional life.

The new requirements for the Higher College of Marketing and Communication (HFMK) are effective immediately:

  • The course can now be taken with a degree in business administration (Kaufmann/frau EFZ), retail trade (Detailhandelsfachmann/frau EFZ) and mediamatics (Mediamatikerin EFZ) without professional experience.
  • Sur-dossier recordings are possible.
  • Existing educational qualifications and work experience can be credited by education providers.

The learning objectives are based on the professional competencies. They are aligned with the skills acquired in the new basic commercial training. Sustainability, agility and digitalization are integrated into all areas of activity and processes.

Sources and further information: Swiss Marketing, Hfmk.ch

Time travel through commercial history

The Swiss Commercial Association is celebrating its 150th anniversary this year. The new campaign "buerogeschichten.ch" shows how moving the past years have been for business people. It features over 350 online articles - from newspaper clippings to videos and audio reports - from the history of Switzerland's oldest and still active employees' association.

A specially designed website takes interested parties on a journey through 150 years of commercial history. (Image: Swiss Commercial Association)

On the occasion of its 150th anniversary the Swiss Commercial Association is launching an immersive campaign that takes you back in time to the association's beginnings in the 1870s. Education and lifelong learning have always been firmly anchored in the DNA of the Swiss Commercial Association. Committed to constantly developing the professions and promoting the dual education system, the association has made the commercial professions what they are today: an absolutely central pillar for the Swiss economy and working world.

Audio contributions, videos and texts from 150 years of association history

In the anniversary campaign "buerogeschichten.chIn the "Businessmen and women" section, former professionals, current apprentices, association representatives, partner organizations and politicians have their say. Whether you filter by topic or browse through the contributions over time, they all provide a lively insight into the 150-year history of the association. Among the more than 350 online contributions are some amusing trouvailles: old documents, silent films, video contributions and sources that seem curious and sometimes strange from today's perspective. An 1871 office regulation states, "The taking of food is permitted between 11:30 a.m. and 12:00 p.m., but work may not be stopped in the process." The first woman was admitted to vocational courses in 1901. A film clip from the 1960s shows screaming stock traders at ringside. Throughout the decades, merchants recount their apprenticeship experience. Letters from the future give a glimpse of where the CT professions are headed in the coming decades.

Other times, other customs

The "buerogeschichten.ch" campaign documents the transformation of the association, the Swiss education system and commercial job profiles. And it provides an illuminating insight into the development of our society and the associated role models. With individual contributions, you can't help but be amazed - and delighted by these milestones.

The anniversary campaign was created in collaboration with the subsidiaries Hochschule für Wirtschaft Zürich HWZ and Schweizerisches Institut für Betriebsökonomie SIB and accompanied by a historian. The material comes from the archives of the Swiss Commercial Association and is freely accessible in the Swiss Social Archive in Zurich. Concept, design and implementation were carried out by the agency Partner & Partner AG from Winterthur. The campaign was officially launched by the Swiss Merchants' Association at its celebratory event on March 3, 2023.

Source: www.kfmv.ch

FFHS becomes official university partner of the ZSC Lions

The Distance Learning University of Applied Sciences Switzerland (FFHS) and ZSC Lions AG become cooperation partners. Together they want to create added value for Swiss sports by contributing to the strengthening of dual careers. A first product of this partnership, is the joint CAS "Digital Business in Sports".

Partnership sealed: Mike Kurt, co-program director CAS, Romano Caviezel, CTO ZSC Lions AG and Bora Altuncevahir, program director BSc Business Administration Sport Management. (Image: FFHS)

Around 130 professional athletes are now studying at the FFHS. Among them are Lia Wälti, captain of Swiss women's soccer, and ice hockey goalkeeper Leonardo Genoni of EV Zug. Thanks to the "blended learning" study model, top-level sport and university studies can be combined - an important offer for athletes to prepare their careers after their professional career in parallel. With the Bachelor of Business Administration in Sports Management, the FFHS has also turned its attention to the sports industry in recent years, especially in the areas of digital transformation, new technologies, sports tech, and digital business models.

Continuing education for after the sports career

Topics that are also very topical for ZSC Lions AG. The club has set itself the goal of being a pioneer in the Swiss ice hockey league when it comes to digital transformation. The commissioning of the new, modern "Swiss Life Arena" in October 2022 was a first milestone.

With FFHS as a new university partner, the ZSC/GCK Lions are underlining the importance of education and training in the professional sports environment. "In order to enter professional life after a successful sports career, further education is important. The FFHS has a wide range of continuing education courses tailored to athletes," says Romano Caviezel, member of the management board of ZSC Lions AG.

New CAS at the FFHS: Sport goes digital

For some years now, the sports business has been in a state of upheaval. New business models and the increasing importance of digital technologies are driving change. With the new CAS Digital Business into Sports, the FFHS is launching its first continuing education program in partnership with the ZSC/GCK Lions.

The CAS provides know-how in the areas of digitalization, sports tech and innovation, which complements the BSc Business Administration Sport Management. "This in-depth training enables graduates to play a key role in shaping the digital transformation in sports business," says co-director Ralf Kreuzer.

The CAS Digital Business in Sports comprises three modules and lasts two semesters. Like all courses of study, the FFHS also offers this continuing education in the flexible "blended learning model": 80 percent of the continuing education is completed in online study, while the classroom instruction takes place in the Gleisarena FFHS Campus at Zurich HB or also in the Swiss Life Arena. The course will start for the first time in October 2023, and the registration deadline is June 30, 2023.

More information

Cargobikes: great potential, but also need for action

Cargobikes are on the rise in Europe. Thanks to them, 50 % of goods transports could be handled in an environmentally and urban-friendly way, according to the report. The Pro Velo Schweiz association is therefore calling on the federal government, the cantons and the cities to push ahead with development.

Cargobikes have great potential, but still face obstacles in Switzerland. (Image: Depositphotos.com)

It is obvious that the use of cargo bikes can save energy and reduce CO2 and noise pollution. A new overview by the European Cyclists' Federation (ECF) shows how strongly the presence of such cargo bikes in cities has already developed in recent years.

Potential with obstacles

Cargobikes also have great potential in Switzerland. Be it for the transport of children, be it for the transport of goods. The motivation to ride a Cargovelo is not only the transport of children or goods. Many users also want to travel ecologically and, for example, do without a car, but continue to travel autonomously and efficiently. "Cargovelos are a game changer," says Matthias Aebischer, president of Pro Velo Schweiz. "They are one of the keys to climate-neutral and livable cities, because they help solve several urban problems at once."

The three biggest obstacles to the rapid development of cargo velos are the legal restrictions on vehicles, the width of bicycle infrastructure, and the availability of parking.

Remove restrictions for cargo bikes

The weight and width restriction of cargo bikes must be liberalized in the view of Pro Velo. The same applies to the transport of children on the various types of electric bikes.

On the infrastructure side, it is primarily the cities that are challenged. The widths of bike lanes and paths are not yet designed for cargo bikes in many places. Pro Velo therefore expects the cantons and cities to expand the bicycle network, which will have to be expanded anyway due to the Veloweggesetz. The creation of logistics hubs that enable the transfer of trucks and delivery vans to cargo velos should also be promoted. Here, the cities can participate in the Oslo example orient

Because cargo bikes are too big for bicycle parking spaces, additional parking areas are needed for them. One possibility is the rededication of car parking spaces. Pro Velo, however, wants to go further and proposes to the federal government that car parking spaces should generally be made available for cargo bikes.

Subsidize cargo bikes?

Another incentive, which is practiced in various European countries such as recently also Austria, is the subsidy for the purchase of a Cargovelo. In the last five years, for example, the purchase of 10,000 Cargovelos has been financially supported throughout Europe. An example for Switzerland is the Canton Geneva who has been practicing this since 2019. In the two years to 2021, demand has more than tripled with 589 contributions.

Source: Pro Velo Switzerland

In negotiations with industrial customers, there are

Price and contract negotiations in the B2B sector are usually won by the partner who enters the showdown with a clearer goal and reacts confidently to the tactical games played by the other party. Seven tips for salespeople on how to increase their chances of success in negotiations.

Negotiations with industrial customers are demanding. Usually, the partner who enters the showdown with clearer goals wins. (Image: Unsplash.com)

Sales consultant Horst Bayer gives seven tips on how salespeople can better succeed in negotiations with industrial customers.

Tip 1: Be aware of the nature of a negotiation

In price and contract negotiations in the B2B sector, the sellers and the buyers are usually under a lot of pressure to succeed, because both sides have to achieve predefined goals, some of which differ greatly from each other. Therefore, it is not necessary to conduct negotiations with the resolution: I want to win.

Negotiations are usually won by the party that pursues the clearer strategy and objectives and is best prepared. The idea that both sides always behave fairly in negotiations is unrealistic. In many negotiations, the seller must quickly say goodbye to a - usually feigned - win-win cuddly course.

Price and contract negotiations in the B2B sector are usually so complex that one is rarely successful with a standardized approach and behavior. What is needed are personalities with backbone and experience who react flexibly to the situation and the partner; personalities, moreover, with social and emotional intelligence, who think strategically and behave tactically intelligently, and who, despite all their will to succeed, are also willing and able to cooperate. Such negotiators develop over the course of many years - by continually studying their partners and critically reflecting on their own behavior and its impact.

Tip 2: Put yourself in the buyer's perspective

Changing your perspective to that of the buyer can work wonders. When breaking out of the first-person perspective, a whole new world of creative ideas often opens up to create a common basis for negotiation.

If buyers feel that their needs and their personality are being taken seriously and understood, then they want to find a solution with their partner. This means that the energies of the seller and the buyer are moving in the same direction. So they are more likely to find a solution that both sides can live with - without one partner losing sight of his or her negotiating goals.

Tip 3: Create the necessary value awareness for your solution

The central task of the salesperson is to create value awareness in the buyer for his problem solution. He must convince the buyer with a customer-specific sales argument that it is more advantageous for him and his company to buy product X or service Y from him - even if the price is somewhat higher than that of the competition.

To do this, salespeople must understand their customers' business and know their current market situation. The more competence a salesperson has in this area and the more confidently he or she acts as a result, the more difficult it is for the buyer to insist on price reductions or to award the contract to a competitor.

Tip 4: Be authoritative, don't just spout phrases

When things get tricky in negotiations, for example because the buyer raises a real sticking point, many salespeople show evasive behavior. That is, they bring up minor points or use phrases. This "annoys" the buyer and can lead to a loss of trust and thus to a loss of the order.

If a salesperson shows such evasive behavior, buyers conclude from this: This salesperson will also take flight if there are problems in the cooperation after the contract has been concluded. This means that he and his company will always have some kind of excuse instead of taking our wishes and problems seriously and addressing them. Therefore, he is not an attractive partner.

Tip 5: Build a relationship with the buyer - early on

Salespeople often try to bypass the "evil" buyer and instead seek contact with the specialist departments. No buyer can tolerate this. So he lets the salesperson "run aground". Sellers usually justify their bypassing of the purchasing department with the argument: "The purchasers have no idea about the subject matter". However, today's buyers are mostly experts who, due to their training and experience, understand technical procedures and processes very well - as well as business contexts.

As a salesperson, seek contact with purchasing as early as possible. And when talks are held with the specialist departments, for example to sound out future requirements? Then salespeople should ask their counterparts in the specialist departments: "Who from Purchasing is responsible for this? I would like to introduce myself to her/him." Otherwise, this will come as a bitter revenge when it comes to placing orders.

Tip 6: Present yourself and your company as a possible strategic partner

Negotiations in the B2B sector are often about agreeing a strategic partnership, i.e. setting the course for long-term cooperation. Because it has advantages for both sides. For example, more efficient processes can be agreed on the basis of a stable business relationship characterized by trust - such as the elimination of incoming goods inspections or a simplified sampling procedure.

Suppliers seeking a strategic partnership with a company must not only be able to satisfy its acute needs. They must have other qualities to be attractive as a partner - for example, a high level of innovation, development expertise and liquidity. As a salesperson, convince buyers that your company has these qualities.

Tip 7: React calmly and confidently to tactical fouls from buyers

Buyers have to achieve the best possible negotiation result for their company. That's why it's normal for them - like salespeople - to sometimes use certain tricks of the trade. Complaining about this is pointless. After all, this is as much a part of negotiating as the "tactical fouls" in a soccer game. You should react to this in an appropriately relaxed manner. Here are a few examples

  • Buyer's trick: The purchaser generalizes negative individual cases
    Seller Response: not accept, demand further examples
  • Buyer's trick: Buyer engages in salami tactics by constantly making additional demands
    Seller Response: first collect all negotiation points and only then negotiate
  • Buyer's trick: Buyer tries to create stress in the seller by playing up trivialities or feigning disinterest
    Seller Response: remain calm, continue to argue calmly, do not launch counterattacks
  • Buyer's trick: Buyer tries to intimidate the seller by, for example, making him wait for a long time, constantly phoning on the side
    Seller Response: Address courageously and openly, but with a smile, that you see through the tricks of the other side

Salespeople must recognize the "tactical fouls" of buyers. Only then can they react to them with confidence. If a salesperson is unable to do this, he or she is considered by the buyer to be less assertive - even within his or her own company. From then on, he will treat the salesperson accordingly. Therefore, one maxim for "unfair tricks" by buyers should be: Show flag and self-confidence. Only then will buyers take them seriously as negotiating partners.

 

To the author:
Horst Bayer is a senior consultant and trainer at the sales consultancy Peter Schreiber & Partner in Ilsfeld, Germany (www.schreiber-training.de). Before becoming a consultant, the business economist worked for 30 years in the areas of purchasing, logistics and materials management for manufacturing and capital goods industries. Most recently, he was head of purchasing and logistics at an automotive industry supplier.

Countering the IT skills shortage with IT talent from North Africa

"Remotecoders" has gathered its core team in Egypt and is opening an office in Cairo with the support of local partner QualiDev. The non-profit association provides IT nearshoring by preparing talented refugees and vulnerable youth for remote internships with EPFL support.

Together against the shortage of IT specialists: The founders of Remotecoders: Hussam Allaham (left) and Christian Hirsig. (Image: zVg / Remotecoders)

"Remotecoders" is the latest initiative of Christian Hirsig, who already launched the non-profit association "Powercoders" in Switzerland with his wife Bettina in 2016 - a coding school for refugees and migrants that helps IT talents in Switzerland to get a solid education in IT programming and thus to enter the IT world and start an independent life. Together with Hussam Allaham, who himself came to Switzerland as a Syrian refugee via a refugee camp in Lebanon, Christian Hirsig now set up the "Remotecoders" during the Corona pandemic. The SDC supports the project in the conviction that this type of development aid is effective on the ground and with young people affected by unemployment in the MENA region.

Egypt was selected as the pilot country. Together with EPFL, Remotecoders prepares the talents remotely for their IT internship. The starting team in Cairo includes two managers, eleven team leaders and 29 interns. From front-end development to Java Enterprise to data engineering, there are specialists for everything in the Remotecoders team. Eleven companies, such as the WWF, the online retailer BRACK.CH and the Swiss digital agency viu, have already been brought together with the team in Egypt for a pilot project.

Swiss companies use the IT services of Remotecoders and kill two birds with one stone: they put the IT skills shortage in Switzerland a creative solution and they give people in North Africa a professional perspective. Marcel Rassinger, CIO of BRACK.CH can confirm this: "For us, Remotecoders is an excellent way to counteract the shortage of skilled workers and support talented people in their career entry into IT." Initiator Christian Hirsig adds: "We are currently moving into 480 m2 of office space in Cairo and are highly motivated to make our project a win-win situation for the Swiss partners involved as well as for our employees here in Egypt. With Powercoders, we have already proven once that people from the most diverse backgrounds can successfully find their way into IT."

Source: Remotecoders

Recovery emerging in the events sector

The events sector is slowly recovering from the pandemic, according to figures from the new survey by industry associations Expo Event Swiss LiveCom Association and Tectum. Although sales and profit forecasts have not yet reached pre-pandemic levels, despite significant increases, they give cause for cautious optimism for the future.

The events sector is visibly recovering from the pandemic aftermath, but energy shortages and skills shortages are clouding the results. (Image: Pixabay.com)

While the first quarter of 2022 was still dominated by the measures to combat the corona pandemic, sales figures in the trade show and event industry literally exploded in the summer of 2022. At the end of the year, however, volumes fell again as energy shortages and the conflict in Ukraine put the brakes on business once more. This leads to sales figures that, while still only 70 % of those before the pandemic, give the events sector a more hopeful outlook for the future, according to a survey by Expo Event Swiss LiveCom Association and Tectum, the Swiss association of marquee builders and temporary structures. Sales figures for 2022 are put at 3.85 billion. CHF (2021: CHF 2.52 billion, 2020: CHF 2.37 billion). But it is still a long way from the pre-pandemic figure; this was CHF 5.56 billion in 2019. CHF.

The hype on digital events is subsiding

Due to the pandemic, digital events experienced a real boom, which is now, however, slightly put into perspective again, as the surveyed figures show: Last year, an average of 80 to 100 % of the revenues of the companies surveyed were generated by physical events, while the remaining revenue came in equal parts from hybrid and digital events. This suggests that live events will continue to be favored by the market, even though digital formats are here to stay and will continue to play an important role in the future. This is also reported by a current article (chargeable) of this medium.

Shortage of skilled workers and energy costs still key issues

Nevertheless, the event sector continues to struggle with major challenges: Although the total number of people employed has increased slightly again, the shortage of skilled workers is leading to higher wage and recruitment costs. As a result, price increases of 15 to 20 % are expected due to the narrowed margins caused by the combination of ongoing strong inflation and massively higher material and energy costs. Whether and how this will affect the order situation is currently still open. Christoph Kamber, President of Expo Event, nevertheless remains cautiously optimistic: "We are pleased and grateful that the figures and sales are pointing upwards again. Nevertheless, we still have some sticking points to solve in the future. It has been shown once again that uncertainty is poison for our industry and immediately triggers significant sales losses on the event organizer side. However, we are facing this challenge courageously, optimistically and, of course, with creative and convincing solutions. If 2023 goes by without any further substantial restrictions, we hope to return to pre-pandemic revenue levels."

Source: Expo Event

Energy: Europe's industry is giving away enormous savings potential

The sharp rise in energy costs is currently by far the greatest challenge for Europe's industrial companies, as a study conducted in 19 European countries by the Aras product innovation platform shows. Nonetheless, many companies have so far only implemented superficial cost-saving measures. A structured approach, on the other hand, is the exception throughout Europe. Yet companies could halve their energy consumption by doing so.

Turn down the heating in offices and workshops: But that's far from the only savings potential. (Image: Pixabay.com)

LED instead of incandescent lamps, sealed doors or retrofitted thermal insulation for the factory floor - many companies have already implemented these measures in response to rising energy costs. "This means that the first step has been taken, but the greatest savings potential is still lying fallow," says Jens Rollenmüller, Managing Director of Aras Germany. "In the past, energy costs were negligible due to their low impact, so they could be roughly distributed across the entire product portfolio. The increased prices for electricity, oil, gas and co. are now forcing companies to rethink towards more transparency. Only when I am aware of which component in my product causes the greatest energy consumption can I also optimize this component in this respect - even for supposedly small things such as the plastic packaging of the finished end product." Such a systematic energy audit with a precise analysis of the data collected gives companies an even deeper insight into their entire value chain. The evaluation of all relevant information then forms the basis for energy-optimized production. Compared to the actual state, half of the energy used can be saved in this way.

Digital twin instead of Excel list

In the past, simple Excel lists were sufficient for a rough cost breakdown, but they did not allow for a precise analysis. "In order to transparently uncover all cost drivers, companies must begin to also record, measure and evaluate the data for energy. On this basis, companies can create a digital twin or expand it to include data on energy consumption. This opens up new opportunities: On the one hand, companies receive a snapshot of the product with a listing of all individual parts and the associated energy costs in real time. On the other hand, the companies can use this data in the R&D department, for example, to exploit optimization potential as early as the design phase," says Aras Managing Director Rollenmüller.

Savings potential can be determined from existing data

Much of the data required for such a digital twin is already collected in the companies; now this information must be linked in a meaningful way. In view of the international competitive pressure, the PLM expert urges rapid implementation: "No matter how the geopolitical situation develops, energy prices will not return to the old level. That's why the industry needs to adapt its production promptly - and rely on quickly configurable and stable software solutions for this purpose.

This is an approach that helps companies on their way to achieving climate neutrality and at the same time massively reduces costs. The energy crisis is currently the biggest hurdle for companies on the road to sustainability, as the Aras study "Europe's Changing Industry" shows. More than 440 top decision-makers from 19 European countries were surveyed on behalf of the product innovation platform.

Source: Aras. The study is available at this link available for download free of charge. 

Swissmem appoints two new Executive Committee members

Adam Gontarz and Noé Blancpain will join Swissmem's Executive Committee as of April 1, 2023, and January 1, 2024, respectively. They will replace the current incumbents Robert Rudolph and Ivo Zimmermann.

New Executive Committee members at Swissmem: Adam Gontarz (left) and Noé Blancpain. (Image: Swissmem)

Adam Gontarz is currently responsible for the strategic and operational management of the industrial sectors "Additive Manufacturing" and "Automotive" at Swissmem. At the same time, he is a guest lecturer for industrial communication, digitalization and innovation management at the Hochschule OST and HSLU. In addition, Adam Gontarz is founder and CEO of the ETH spin-off SIGMAtools GmbH, which offers innovative solutions in the field of data acquisition and analysis as well as resource optimization of complex mechatronic systems, machines and buildings. Prior to 2014, he was a research associate at the Institute for Machine Tools and Manufacturing at ETH in Zurich. Adam Gontarz brings a broad range of expertise and practical industry experience to his new role as Head of Digitalization & Innovation. He replaces Robert Rudolph, who is leaving Swissmem on March 31, 2023 for a new professional challenge.

Noé Blancpain is currently an independent partner at reflecta ag in Bern. He has been leading project management and business management mandates there in the areas of communication, politics and digitalization since 2019. From 2012 to 2018, he worked at the Federal Department of Economic Affairs, Education and Research as a Personal Assistant to Federal Councillor Johann Schneider-Ammann and from 2014 as Head of Communications. From 2009 to 2012, he was head of communications for the FDP.Die Liberalen Schweiz, among other positions. During his studies, Noé Blancpain practiced journalism and co-founded two startups. Noé Blancpain is regarded as a leader with proven political and communications expertise, who also knows the Swiss political mechanics as well as the media landscape from many years of experience. Accordingly, he has a strong network of contacts in politics, the media, business, academia and associations.

The previous holder of the position, Ivo Zimmermann, is stepping down from the Executive Board at his own request after what will then be 13 years, and at the same time is relinquishing his position as Division Manager. Swissmem is pleased that he will continue his commitment to the association as a communications expert.

Source: Swissmem

Swiss tech industry looks back on positive year 2022

Business in the Swiss tech industry (machinery, electrical engineering, metals and related technology industries) developed positively last year. Compared with 2021, sales increased by +9.4 percent, exports by +5.6 percent and new orders by +2.4 percent. This partially offset the slump in orders suffered in the third quarter of 2022.

In 2022, the Swiss tech industry continued its upward trend. The challenges for the industry lie primarily in the shortage of skilled workers and access to global markets. (Image: Pixabay.com)

Sales in the Swiss tech industry increased by +9.4 percent in 2022 compared to the previous year. This was reported by the industry association Swissmem. In the fourth quarter of 2022, the increase compared to the same quarter of the previous year was +8.8 percent. The industry thus recorded the seventh consecutive quarter with higher sales in each case. Both SMEs and large companies benefited from this upturn, Swissmem added. Incoming orders also increased by +2.4 percent compared to 2021. In the fourth quarter of 2022, they increased by +2.4 percent compared to the same period last year. This was very encouraging, he said, because in the third quarter of 2022, new orders from abroad had slumped by over 20 percent compared with the previous quarter. Coupled with global recession fears, Swissmem then also feared a sharp downturn in industry. This did not materialize for either SMEs or large companies. Instead, capacity utilization in the fourth quarter was a high 89.6 percent, well above the long-term average of 86.2 percent. In line with this, the number of employees in the tech industry continued to increase. It rose to 326,500 in the fourth quarter of 2022 and was +2.7 percent higher than in the prior-year period.

But Swissmem puts this into perspective: These positive figures should not obscure the fact that all companies are suffering from rising costs for energy, raw materials and labor. Energy-intensive companies in particular are at a massive disadvantage in the market due to the industrial policy measures of the EU states. Their company locations in Switzerland are at risk.

Higher exports for all product groups

Exports of goods by the tech industry increased by +5.6% year-on-year in 2022, reaching a value of CHF 72.3 billion. All major markets developed positively. For example, exports to Asia increased by +11.7 percent, to the USA by 7.9 percent and to the EU by +4.3 percent. Exports of all major product groups increased. Compared with 2021, exports increased by +8.5 percent for metals, +7.4 percent for electrical engineering/electronics, +5.4 percent for mechanical engineering and +4.2 percent for precision instruments.   

Significant risks and uncertainties 

Commenting on the 2022 business figures, Swissmem Director Stefan Brupbacher says: "Overall, the situation of the Swiss tech industry is better than feared. After the third quarter of 2022, we expected a downturn. This has not yet occurred." Brupbacher also attributes the good sales figures to the fact that companies were able to work off and deliver the high order backlog. This was made possible because, with the exception of individual key and electronic components, supply chain problems have eased noticeably. "I am cautiously optimistic for the current fiscal year," adds Brupbacher. This is in line with the Assessments of the entrepreneurs and companies from Swissmem membership. According to the latest survey, one third expect higher order intake from abroad in the coming twelve months. Growth impulses are expected above all from the USA and non-European markets. Thirty-nine percent of respondents expect orders to remain unchanged. A decrease in orders is expected by 28 percent. However, there are still considerable risks and uncertainties. "In order to further reduce inflation, there are likely to be further interest rate steps by the national banks. This will cool the economy and thus demand for our products. In addition, there is still the risk of an energy shortage next winter," explains Stefan Brupbacher. However, the greatest risks for the global economy lie in a further escalation of the war in Ukraine and an intensification of tensions between China and the USA.

Challenges in the shortage of skilled workers and global market access 

Domestically, the shortage of skilled workers poses the greatest risk to the tech industry. A large proportion of Swissmem member companies complain of difficulties in finding suitable specialists. To counter this, Swissmem is investing substantial resources in the reform of industrial professions, in career marketing and in STEM promotion. However, Swissmem also sees the public sector as having a duty. The public sector has created massive numbers of new jobs in recent years. The administration must not be further bloated, because it is the companies that support the state and not the other way around.

The Swiss tech industry exports almost 80 percent of its products. However, barrier-free access to global sales markets is increasingly becoming a challenge. In the international environment, protectionism and competition-distorting subsidy offensives are on the rise. Examples include the Inflation Reduction Act in the USA, the Green Deal in the EU, and China's Dual Circulation Strategy. Martin Hirzel, President Swissmem is concerned: "This new protectionism poses a serious threat to the tech industry. Our companies are at a significant competitive disadvantage compared to subsidized and tariff-protected foreign competitors." To counteract this, Switzerland must facilitate market access for companies worldwide. For example, the free trade agreement with Mercosur must finally be finalized and ratified, and the negotiations with India must be brought to a conclusion. A free trade agreement already exists with China. However, most high-tech machinery is exempt from customs duties. Talks need to be initiated here for an extension of the agreement. "But the most urgent task is to put the bilateral relationship with the EU - by far the most important trading partner - on a new footing. In an increasingly tripolar world, this is a common sense imperative," Hirzel stresses. In this way, Switzerland can secure access to the European single market, create the conditions for full participation in European research cooperation and, by means of an electricity agreement, reduce the increased risk of an electricity supply bottleneck from 2025. In addition, it would be ensured that companies can recruit missing skilled workers in the EU without much bureaucratic effort. "It is high time to move forward in the European dossier. The goal must be to conclude the negotiations by spring 2024," Hirzel emphasizes.

Source: Swissmem

Job growth thanks to high demand for IT professionals

The Swiss labor market is defying recession fears and job cuts at international technology companies. The IT sector saw the strongest growth in the number of advertised jobs, according to the Michael Page Swiss Job Index. Demand for IT jobs was spread across the financial and business services, healthcare and life sciences, wholesale and retail, manufacturing and public administration sectors.

Job growth continues. The IT sector in particular is constantly creating new jobs. (Image: Pixabay.com)

The number of jobs advertised each month in Switzerland increased by +5.2% (January - February 2023). The IT sector performed best with a monthly job growth of +20%.

Leading categoriesMonthly growth
(Jan. 2023 - Feb. 2023)
Annual growth
(Feb. 2022 - Feb. 2023)
  1. IT Supporter:in
+21.7%-10.6%
  1. IT administrator:in
+16.7%+22.5%
  1. Real estate specialist:in
+16.2%+25.4%
  1. Telecommunications Specialist:in (e.g. VOIP)
+14.3%-10.5%
  1. System specialist:in
+13.5%-15.6%

Year-on-year, the number of advertised jobs increased by +6.2% (February 2022-February 2023). French-speaking Switzerland led the growth with a monthly increase of +6.5%. In German-speaking Switzerland, where 9 out of 10 jobs are advertised, the number of vacancies increased by +4.9%.

Eastern Switzerland recorded the largest job growth with +7.7 %. More than 50% of the job vacancies in this region were for IT, engineering or technical professionals. All regions recorded positive monthly growth.

RegionsMonthly growth (Jan. 2023 - Feb. 2023)Annual growth
(Feb. 2022 - Feb. 2023)
Eastern Switzerland (AI, AR, GL, GR, SG, SH, TG)+7.7%+7.5%
Lake Geneva region (GE, VD, VS)+6.1%+4.8%
Central Switzerland (LU, NW, OW, SZ, UR, ZG)+5.9%+14.6%
Northwestern Switzerland (AG, BL, BS)+4.9%+11.1%
Zurich (ZH)+4.5%+2.0%
Central Plateau (BE, FR, JU, NE, SO)+3.4%+3.4%

"The labor market has started the new year very well, especially in IT and despite the market correction following Covid-driven IT infrastructure growth in 2021 and 2022. Overall, demand for IT professionals is increasing, especially in security, development and data management. Demand in the systems and support areas, on the other hand, is back at pre-Covid levels," says Thibaud de Balby, Manager Technology Recruitment at Michael Page, commenting on the situation. In general, then, the signs in the Swiss labor market are pointing to optimism, as already reported elsewhere was.

Source: Michael Page

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