Swiss Tech Industry: Recovery Amid Risks

In the first half of 2026, the Swiss tech industry continued the slight upward trend seen in the previous year. New orders, revenue, and exports increased compared to the same period a year earlier. Behind these figures, however, lies a mixed picture: the recovery is unevenly distributed, margins remain under pressure, and geopolitical and trade-related risks threaten stability.

Revenue growth, particularly among large companies

According to the Swissmem Index, sales in the Swiss tech industry rose by 2.5 percent in the first half of 2026 compared to the same period the previous year. However, this growth was driven almost exclusively by large companies. SMEs recorded a decline of 3.8 percent during the same period. New orders increased by 12.1 percent, although this figure must be viewed in context due to a strong base effect, as the previous year’s figure was exceptionally low. Capacity utilization reached 81.1 percent in the second quarter, remaining well below the long-term average of 85.6 percent.

The EU Drives Export Growth

Goods exports reached a value of 34.5 billion Swiss francs in the first half of 2026—an increase of 1.7 percent compared with the same period last year. The main driver was trade with the EU, which rose by 3.4 percent. Asian markets showed only weak growth, rising by 0.9 percent, while exports to the U.S. continued to decline (-5.3%). Results varied across product categories: rail, road, and aircraft saw strong growth thanks to a few large orders (+19.3%), while electrical machinery and equipment grew by 5.5 percent and metals and metal products by 4.2 percent. By contrast, declines were recorded for measuring, testing, and precision instruments (-3.0%) as well as machinery, equipment, and mechanical devices (-2.1%).

Margin Pressure Dampens Optimism

«The recovery in the Swiss tech industry has continued. However, it remains fragile, unevenly distributed—and has recently lost some momentum,» comments Stefan Brupbacher, Director of Swissmem. «We are concerned that EBIT margins deteriorated across nearly the entire sector last year: A quarter of companies have negative EBIT margins, and another 29 percent can barely cover their capital and R&D costs. This is dangerous, because it dries up the funds needed for investments in the future. Against this backdrop, it is imperative and urgent that companies be relieved of bureaucratic costs and regulatory burdens.»

The Purchasing Managers’ Index (PMI) for the manufacturing sector is sending positive signals, pointing to growth in nearly all major markets. Entrepreneurs in the tech industry are also expressing cautious optimism: 35 percent expect foreign orders to rise over the next twelve months, while 41 percent anticipate that order levels will remain steady.

Tariff Differences with the EU Become a Disadvantage for the Location

A major risk lies in U.S. trade policy. Since the end of July 2026, a 12.5 percent tariff has been in effect on goods from the Swiss tech industry—2.5 percentage points higher than the rate applied to products from the EU. According to a survey of Swissmem member companies, 42 percent can barely cope with this difference. However, well over one-third of the companies must offer price concessions to their American customers, and 17 percent of the companies must absorb the tariff disadvantage themselves in order to maintain a presence in the U.S. market.

If the tariff differential with the EU were to increase to five percentage points, U.S. business would be seriously jeopardized for nearly half of the companies. If the differential were to reach 7.5 percentage points, that share would rise to 58 percent. By 2025, the tech industry had already lost one billion Swiss francs in export volume in its U.S. business compared to the previous year.

For Martin Hirzel, President of Swissmem, one thing is clear: «An agreement that does not put us at a disadvantage compared to our main competitors remains essential.» At the same time, he sharply criticizes the National Council’s rejection of the free trade agreement with the Mercosur countries: «This decision is not just disappointing. It’s absurd. We’re fighting with the U.S. to ensure that Swiss products aren’t subject to higher tariffs than those from the EU. At the same time, the National Council is ensuring that this very situation remains unchanged in the promising Mercosur market.»

Free Trade with China and Mercosur: Two Key Agreements

According to a survey of Swissmem members, a new free trade agreement with China tops the wish list, followed by an agreement with Mercosur in second place. It is encouraging that President Parmelin and his team have achieved a substantial expansion of the free trade agreement with China, which will provide companies in the Swiss tech industry with significantly better market access.

Swissmem is calling on Parliament to approve the free trade agreement with Mercosur during the fall session and to correct the National Council’s mistake. In addition, the association expects the expanded agreement with China to be ratified and brought into force as soon as possible.

Source: www.swissmem.ch