MEM SMEs continue to battle headwinds
The Swissmechanic SME-MEM business climate index continues to show a tense situation in the mechanical, electrical and metal industry at the start of 2026. At around -30 points, the index remains clearly in negative territory. Three quarters of companies rate their current business situation as unfavorable.
The business climate in Swiss industry remains pessimistic at the start of 2026. Around 40% of companies recorded a decline in incoming orders and sales in the fourth quarter of 2025 compared to the previous year. EBIT margins fell at 46%. Although individual companies reported a slight stabilization, overall capacity utilization remains below the long-term average. Only 18% of companies still have an order backlog of more than twelve weeks.
Order situation remains the biggest concern
At 63%, the order situation remains the biggest concern for companies. Exchange rate fluctuations (37%) and the shortage of skilled workers (26%) are an additional burden. 17% of companies are currently using short-time working - a figure that corresponds to the average of previous quarters. The short-term order situation remains secure for most companies: seven out of ten companies have at least four weeks of production secured.
US tariffs bring only limited relief
Even the reduction in US tariffs from 39% to 15% only provides limited relief. For the majority of companies, this does not mean a turnaround, but only a moderate improvement in business prospects. Strategic adjustments continue to focus on process and cost optimization, while production relocations are rarely planned.
Investments under pressure
Financial restrictions are preventing 26% of companies from investing - a slight increase compared to fall 2025. The main reason for this is a lack of own funds. At the same time, two thirds of companies are planning to keep their production capacities constant. The majority of companies also kept their headcount constant, with just under one in three having to reduce their workforce.
Macroeconomic environment remains challenging
The global economy will lose momentum slightly in 2026. BAK expects Swiss gross domestic product adjusted for sport to grow by 0.9% in 2026. Development in the EU will be at a slightly higher level with growth of 1.2%. The US economy will grow more strongly with a forecast growth rate of 2.8%. The Swiss franc will also remain strong in 2026, at CHF 0.93/euro or around CHF 0.80/USD.
Swissmechanic President Nicola Tettamanti says: «Our SMEs are showing great stamina. But stabilization at a low level is not yet a recovery. We need reliable framework conditions and political stability that enable investment and create planning security.» Swissmechanic Director Erich Sannemann adds: «Companies are reacting pragmatically: they are optimizing processes, securing their liquidity and keeping their workforces as stable as possible. This resilience is impressive - but it should not be taken for granted.»
More information: www.swissmechanic.ch
