Swiss tech industry: between stagnation and location loyalty

The Swiss tech industry had a lost year. 2025 was characterized by high US tariffs and weak export markets. Turnover (-0.3%) and goods exports (+0.7%) stagnated. The first signs of recovery in incoming orders (+1.4%) are small rays of hope. However, the volatile global situation, the unpredictable US customs policy, the strong franc and the EU's isolationist tendencies will continue to pose major challenges and risks in 2026. Nevertheless, a recent survey by Swissmem shows that companies remain committed to Switzerland as a business location and plan to continue investing here.

Sales stagnate, slight recovery in the second half of the year

Turnover in the Swiss tech industry (machinery, electrical and metal industry and related technology sectors) remained practically at the previous year's level in 2025 (-0.3%). After a weak first half of the year with a significant decline in sales (-2.5%), there was a slight recovery in the third (+3.0%) and fourth quarter (+1.1%) compared to the same periods in the previous year.

Incoming orders developed only modestly. They increased by a total of 1.4% in 2025. Nevertheless, the second half of the year was better than the first. Compared to the respective quarters of the previous year, orders increased in both the third quarter (+5.4%) and the fourth quarter (+5.0%). These are small rays of hope. In addition, capacity utilization in companies rose slightly for the first time in ten quarters. It reached 81.5% in the fourth quarter, having previously fallen to 80.7%. However, this is still well below the long-term average of 85.6%. The number of employees in the tech industry amounted to 322,900 in the fourth quarter of 2025, which is 6,600 fewer than in the previous year.

EU business compensates for export losses to the USA and Asia

Compared to the previous year, exports of goods in the tech industry stagnated in 2025 (+0.7%) and reached a value of CHF 68.1 billion. Among the most important product groups, exports of machinery, apparatus and mechanical equipment fell by 3.5% and exports of metals and metal goods by 0.6%. By contrast, exports of rail, road and air vehicles rose by 14.9%, electrical machinery, apparatus and other electrotechnical goods by 3.0% and measuring, testing and precision instruments by 0.5%.

The most important sales markets developed differently. Due to the high tariffs, the sharp decline in exports to the USA (-7.6%) is hardly surprising. In the fourth quarter alone, they fell by 18%. Exports to Asia were also down in 2025 (-2.9%), with the negative development of the Chinese market (-11.2%) being particularly significant. The secure anchor for the tech industry's exports was once again the EU market, where exports of goods rose by 3.5%.

Brightening the mood with various reservations

«2025 was a lost year for the Swiss tech industry,» says Martin Hirzel, President of Swissmem. «However, companies did very well in the face of a brutal environment with horrendous US tariffs and a global reluctance to invest.» Expectations for 2026 are mixed. There was a slight tailwind for orders in the second half of 2025, and the industry PMI points to growth in key markets, particularly in Europe.

The mood among entrepreneurs has also brightened slightly. In the latest survey, 32% of companies expect orders from abroad to increase over the next twelve months. 45% expect the trend to remain unchanged and 23% anticipate a decline. However, it is not yet possible to assess whether this positive trend will continue or remain a brief flash in the pan. «The challenges and risks remain great,» warns Martin Hirzel. «I'm thinking of the generally uncertain global situation with many open and smouldering conflicts, the unpredictable US customs policy, the strong Swiss franc and the EU's recent isolationist tendencies. I am also concerned that there seems to be a lack of understanding in parliament of the importance of our locational advantages.»

Locational advantages secure investments in Switzerland

Despite the recent difficult years, companies in the tech industry have remained committed to Switzerland as a business location. This was revealed by a survey of Swissmem member companies at the beginning of 2026, which showed that 88% of companies have invested in Switzerland in the last three years - primarily in the expansion and modernization of production capacities, in the development and manufacture of new products and in the modernization of IT and business processes. The most important reasons in favor of Switzerland are the availability of qualified workers (79%), the advantageous labor market regulations (75%) and the good regulatory framework (68%). 81% of companies are also planning to invest in Switzerland in the next three years.

«These survey results show that Switzerland remains an attractive location for the tech industry,» says Stefan Brupbacher, Director of Swissmem. The survey also clearly shows which locational advantages Switzerland must defend to ensure that this remains the case. «An important key to access to skilled workers is the free movement of persons with the EU. That is why the «No 10 million Swiss» initiative must be rejected, as it jeopardizes the free movement of persons,» emphasizes Stefan Brupbacher.

In addition, the focus remains on the liberal labor market and good framework conditions. This includes concluding the customs agreement with the USA. Switzerland must also do everything in its power to ensure that it is not treated as a third country and partially excluded from the market in the event of countermeasures by the EU. Swissmem believes that the Bilaterals III are the only realistic bridge to this, even if there are no longer any guarantees in the new world.

More information: https://www.swissmem.ch