MEM SMEs remain under pressure
The latest SME MEM business climate index from Swissmechanic confirms this: The situation in the mechanical, electrical and metal industry remains tense. No recovery in sight in the first quarter of 2025 either.
The upturn that many were hoping for after two difficult years has failed to materialize. The pressure is particularly evident in the development of margins, which have now been declining for eleven quarters. Investment activity is suffering accordingly: although almost a third of companies are planning to expand their production capacities, financial restrictions are preventing around 20% from investing - often due to a lack of own funds. Swissmechanic's current business climate index is correspondingly negative: it currently stands at -30 points. Around 40% of the companies surveyed reported a decline in incoming orders, sales and margins compared to the previous year.
US tariffs and the effects
International pressure is also increasing. The US tariffs introduced in April, which are currently suspended, are having a particularly indirect impact on SME MEMs - for example as suppliers to strongly export-oriented customers. The associated uncertainty is also dampening willingness to invest. Added to this is the appreciation of the Swiss franc, which further restricts the ability to export.
The outlook for the second quarter remains subdued: Around half of the companies expect no change in turnover, orders and margins compared to the previous year. The figure for staff is as high as two thirds. The balance of assessments remains negative for all indicators. 17% of companies are currently affected by short-time working - in around a third of these companies, this affects more than 40% of the workforce.
Less bureaucracy
Swissmechanic President Nicola Tettamanti says: "The persistently difficult situation requires not only economic resilience, but also political framework conditions that enable investment and innovation. Less bureaucracy and more room for maneuver are crucial now."
Despite the challenging environment, the MEM industries remain determined. They have already proven their innovative strength and adaptability in previous crises. Erich Sannemann, Director of Swissmechanic, explains: "This time too, many companies will find new ways forward with entrepreneurial courage - in the hope that the upturn will not be long in coming."
Source: Swissmechanic
