Swiss industrial companies continue to struggle with securing orders after two years of recession, leaving many owners feeling uneasy about the future. The Swiss manufacturing, engineering, and metal industries (MEM) sector has seen a decline in order intake for several quarters, with only a slight increase in the final quarter of 2022.
The weak demand for capital goods is affecting Swiss machine manufacturers, as customers hold back on new purchases amidst weak economic development in Europe, China, and Japan. Many companies are waiting for further interest rate cuts to finance investments more affordably. This poor order situation has forced some companies like Bystronic, Trumpf, and Liebherr to implement short-time work for their employees.
Component manufacturers are also facing challenges due to excessive inventory levels at customers impacting their sales. As the season for presenting half-year figures approaches, expectations for the business performance of most Swiss industrial companies are low. Recent surveys show low values of mood among purchasing managers, indicating a continued slump in the industry.
With uncertainty looming over the future of these companies and their employees, there is growing unrest among bosses as they navigate through these challenging times. Despite this downturn, some companies continue to innovate and adapt to changing market conditions while others struggle to keep up with the competition.