Industry Report - Swiss Machinery

Panorama 2014Facts and figures

Swiss mechanical and electrical

engineering industries

P104663_Swissmem_Panorama_2014_TEIL1_e008_AW.indd 1 13.05.14 15:19

35 Company size structure

36 Workforce structure by gender and area of activity

37 Trainees

4INDUSTRY SECTOR STRUCTURE

3PRODUCTION AND LOCATION FACTORS

28 Exchange rate index

28 Swiss franc exchange rate

29 Labour costs in the manufacturing sector

30 Innovation ranking

31 Expenditure on research and development

31 R&D personnel by sector

32 Energy consumption of Swissmem members

32 CO2 emissions of Swissmem members

33 European industrial electricity prices in 2013

34 Overall Swiss strike statistics

6

8

8 Overview of 2013 business year

for the MEM industries

9 New orders received by the MEM industries

10 Turnover of the MEM industries

11 Capacity utilization of the MEM industries

12 Exports of the MEM industries

16 Balance of trade in goods

17 Industrial workforce

Contents Panorama 2014

Design and LayoutMondays Modern Media, onmondays.ch

PrintingFO-Fotorotar, Egg

PhotosPhilipp Rohner, Markus Senn, Siemens, Reichle & De-Massari, ABB, SDBB

1THE MEM INDUSTRIES IN A NATIONAL CONTEXT

2KEY FIGURES


35 Company size structure

36 Workforce structure by gender and area of activity

37 Trainees

FROM TRAINEE TO ALL-ROUNDER

FROM VOCATIONAL TRAINEE TO ACADEMIC AND MANAGER

4INDUSTRY SECTOR STRUCTURE

3PRODUCTION AND LOCATION FACTORS

28 Exchange rate index

28 Swiss franc exchange rate

29 Labour costs in the manufacturing sector

30 Innovation ranking

31 Expenditure on research and development

31 R&D personnel by sector

32 Energy consumption of Swissmem members

32 CO2 emissions of Swissmem members

33 European industrial electricity prices in 2013

34 Overall Swiss strike statistics

6

8

18

8 Overview of 2013 business year

for the MEM industries

9 New orders received by the MEM industries

10 Turnover of the MEM industries

11 Capacity utilization of the MEM industries

12 Exports of the MEM industries

16 Balance of trade in goods

17 Industrial workforce

FROM PRACTITIONER TO TEAM LEADER

FROM MECHANIC TO COMPANY MANAGING DIRECTOR

DUAL VOCATIONAL TRAINING – A GOLD STANDARDThe dual vocational training system represents one of Switzerland’s core strengths as a centre

of industry and research. It is constantly adapting to new requirements and opens up a wide range

of prospects. Four examples illustrate a selection of possible career paths.

28

35

38 Swiss industries’ headcount abroad

38 Headcount of industry overall by global region

39 Headcount of foreign industrial companies

in Switzerland

40 Foreign capital holdings of Swiss industry

by global region

41 Capital holdings of foreign companies

in Switzerland

42 Key machinery-exporting countries

42 Rankings in selected product areas

43 Machinery exports per capita

5THE MEM INDUSTRIES IN AN INTERNATIONAL CONTEXT 38


Swissmem represents the interests

of more than 1,000 companies in the Swiss

mechanical and electrical engineering

industries (MEM industries) as well as

those in related technology-oriented

sectors vis-à-vis economic, political and

public audiences.

Swissmem is committed to open compe tition,

innovation, entrepreneurial freedom and

social responsibility, and also campaigns for

a constructive social partnership.

Swissmem – We’re in your corner!Providing services, representing your interests and assuring Switzerland’s position as a strong location for industry and research

ServicesProfessional advice free of charge from

specialists, a first-rate training offering and

a low-cost compensation fund: Swissmem

provides its services to strengthen Switzerland

as a place for industry and research.

RepresentationBased on its broad industry expertise, Swiss-

mem campaigns for the best possible regula-

tory parameters in the interests of the interna-

tional competitiveness of Swiss industry.

NetworkingCooperation and professional exchanges of

ideas and views in 26 specialist divisions,

various local discussion groups and specialist

committees: Swissmem creates strong net-

works with a view to ensuring long-term success.

Our areas of focus


5

Hans Hess, president of Swissmem

SWISSMEM PANORAMA 2013 – EDITORIAL

Hans Hess, what is your assessment of the MEM industries’ current situation?Last year, the MEM industries’ orders,

sales and exports all grew. The compan-

ies are essentially positive about

business in 2014. The underlying

sentiment is considerably better than it

was two years ago. That makes me

optimistic about the immediate future.

What might prevent a continuing up-turn in the sector?The risk of the debt crisis flaring up

again in Europe has not yet dis-

appeared. Since 60% of our exports go

to Europe, that would have a direct

impact on our sector. Also, the situation

in the BRIC countries might not develop

as positively expected. The implications

of the adoption of the mass immigration

initiative are still unclear. In the short

term, however, the investment climate

in Switzerland could deteriorate

because of the uncertainty which has

arisen in relation to the EU.

What are the challenges confronting the MEM industries?The pressure to adapt will remain high

in both the short and long term, particu-

larly for SMEs. The Swiss franc remains

very strong and global competition is

intensifying all the time because of the

growing competition from Asia. As a

result, the MEM industries will have to

work constantly on their competitive-

ness. This is something the companies

in the sector are well aware of. I’m much

more worried that unfortunate political

decisions are likely to cause a deterior-

ation in the favourable operating

environment we have enjoyed up to

now. That could ruin the recent success-

es achieved by companies in adapting

to changing conditions.

What is Swissmem doing in response to these political developments?Swissmem is very deeply involved in

political issues that affect the MEM

industries. Taking an active role in refer-

endum campaigns is just the tip of the

iceberg. We are able to influence

legislation by taking part in a large

number of consultation processes. In

addition, Swissmem has a lot of formal

and informal contact with government

and political circles. This gives us a

chance to provide the MEM industries’

view straight from the horse’s mouth. It

is important that politicians take

exporting industries’ concerns serious-

ly and act judiciously when shaping the

environment in which they have to

operate.

The dual vocational training system is losing support among the Swiss people. What is your view of this de-velopment?This is something that worries me.

People who have a basic vocational

training and appropriate further training

are hugely important to industry. These

are the people who implement custom-

er-focused innovation, use their huge

expertise to advise our customers,

improve efficiency, and ensure that

“Made in Switzerland” remains a

byword for quality. It’s worrying that

ever more high-performing pupils insist

on going to purely academic schools or

are being pushed in that direction.

That’s often not the best route for many

young people to go down.

Why are you so confident that vocation-al training is the better way forward for many young people?Many young people, teachers and

parents underestimate the high value of

vocational training as a first step into

professional life. It doesn’t just provide

knowledge and skills. Working in

multi-functional teams with people of

all ages is a good way of enhancing

social skills. Young people also learn

very early on to accept responsibility.

What’s more, people often forge that

the Swiss education system is anything

but rigid. An apprenticeship gives

young people a qualification they can

build on. They can choose any career

option. With the appropriate perform-

ance, multi-skilled mechanics can

continue their development as far as an

ETH doctorate. This is something that is

unique to Switzerland. The examples in

this “Panorama”, which start on page 18,

illustrate just what is possible.

Where do you think Swissmem should be focusing its efforts to develop young talent and promote further training?Now that the mass immigration initiative

has been adopted, it is all the more

important for us to exploit the potential

of home-grown expertise. Our young

talent campaign aims to get young

people enthusiastic about technology at

an early age. We help young people

choose a profession and apply for an

apprenticeship during their professional

orientation phase. After that, Swissmem

Vocational Training provides up-to-date,

practice-driven training in industrial

professions, while the Swissmem

Executive Training School gives profes-

sionals an opportunity to improve their

career prospects by developing specific

skills. Furthermore, we must succeed in

getting more women into industry and

keeping older employees in the working

environment for longer.

“All career options are open to young people with an apprenticeship behind them”


6

SwiSSmem Panorama 2014 – The mem induSTrieS in a naTional conTexT

1 | The MEM industries in a national context

hotels and restaurants 5%

Transport and communications 5%

Added value in SwitzerlandSectors in %

Workforce in SwitzerlandFull-time equivalents

Year 2013 Source: BeSTa as per noGa classifications 2008

Year 2012 Source: FSo as per noGa classifications 2008

mem industries 10%other sectors 12%

Business-related services 12%

healthcare and social services 7%

Public administration 4%

Financial and insurance services 6%

education 6%

Trading and automotive 15%

energy and water supply 1%

construction 9%

other manufacturing 8%

other sectors 16%

energy and water supply 2%

other manufacturing 10%

mem industries 9%

construction 6%

hotels and restaurants 2%

Transport and communications 4%

Trading and automotive 16%

Public administration 10% Financial and insurance services 11%

healthcare 4%

Business-related services 8%

education 1%

agriculture and forestry 1%

7

SwiSSmem Panorama 2014 – The mem induSTrieS in a naTional conTexT

Source: Fca

DiD you knoW ThAT ...

of the goods exported by the mem industries

59%go to countries in the european union?

Total Swiss goods exports in 2013Sectors in %

other sectors 9%

Foodstuffs 4%

electricity 1%

Textiles 2%

watches 11%

Pharma 33%

other chemical products 7%

mechanical engineering 11%

Precision instruments 7%

electrical engineering, electronics 6%

metalworking 6%

Vehicles 3%

The mem industries are responsible for 9.4% of Swiss added

value and account for 32.5% of all goods exports. They

employ 10% of workforce in Switzerland (full-time equivalents),

including more than 20,000 apprentices. This makes the

mem industries an important pillar of the Swiss economy.

within the manufacturing sector, the Swiss mem industries

represent the largest sub-sector, accounting for 58% of

manufacturing staff and 50% of industrial added value.

Furthermore, after the chemical-pharmaceutical industry,

the mem industries represent Switzerland’s biggest

export sector.

Since 2003, exports by the mem industries have risen from

just under chF 55 billion to over chF 65 billion (+20%), re-

aching an interim record of chF 80 billion in 2008. during the

same period, Switzerland's total goods exports rose from

chF 130 billion to chF 201 billion.

over the last 10 years, the secondary sector of the economy

has recorded personnel growth of 7% overall. The tertiary

sector has increased more strongly over the same period (16%).

despite the increasing importance of the services sector,

Switzerland remains the most industrialized nation in the

world for its size of population.

A key pillar of the Swiss economy

8

SwiSSmem Panorama 2014 – KeY FiGureS

Change in %2011 2012 2013

new orders 1) 98.8 95.0 97.2 2.3

of which domestic 87.8 81.2 83.5 2.8

of which foreign 102.6 99.7 101.8 2.1

Turnover 1) 100.6 103.6 106.5 2.8

of which domestic 114.2 114.1 115.7 1.4

of which foreign 96.8 100.8 103.9 3.1

Capacity utilization 2)

mem industries 89.6% 86.0% 82.7%

Exports 3)

metallurgical industry mio. chF 13 023.6 12 011.2 12 090.5 0.7

mechanical engineering and vehicle construction mio. chF 29 725.9 27 089.8 27 236.3 0.5

electrical engineering/electronics mio. chF 11 781.8 11 371.8 11 385.8 0.1

Precision instruments mio. chF 14 010.5 14 120.6 14 645.4 3.7

Total exports Mio. ChF 68 541.8 64 593.3 65 357.9 1.2

Proportion of overall Swiss exports 34.7% 32.2% 32.5%

Domestic turnover 4)

Total mio. chF 21 172.6 19 403.2 18 974.9 – 2.2

Total goods turnover of MEM industries Mio. ChF 89 714.4 83 996.5 84 332.8 0.4

Full-time employees 5)

MEM industries total 336 609 335 552 332 283 –1.0

MEM industries on the road to recovery

The MEM industries’ key figures for 2013 paint a positive

picture. Growth was recorded for new orders (+2.3%), sales

(+2.8%) and exports (+1.2%). After the difficult years experi-

enced since 2009, this is a pleasing development for the whole

sector.

Based on a stable euro exchange rate and a veritable “boot

camp” for businesses, the improved global economic situation

fostered this upturn in the Swiss mem industries. hence, the

many efficiency- and productivity-enhancing measures

introduced at individual company level are starting to pay off.

Experience shows that rising order intake figures only start to

have an effect on employment figures after a delay. Thus,

headcount in the mem industries remained virtually static in

2013, down 1.0% at 332,283 (including the watchmaking

industry).

Should the trend towards recovery continue in 2014, the

number of employees in the mem industries is likely to

increase again.

overview of 2013 business year for the MEM industries

* Sources: 1) 290 Swissmem reporting members (indexed) 2) KoF/eTh, annual average 3) Fca 4) Based on export ratio (2013: 77.5%) of Swissmem reporting companies; excluding services 5) BFS (BeSTa), including people employed in the watchmaking industry

2 | key figures

9

45%

35%

25%

15%

5%

0%

– 5%

– 15%

– 25%

– 35%

– 45%

200

180

160

140

120

100

80

60

40

20

02003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013


year/Quarter Totalin %

prev. yearof which domestic

of which foreign

Export rate in %

2002 81.3 – 10.2 –11.1 – 9.8 74.0

2003 83.6 2.8 –0.4 3.9 74.9

2004 89.5 7.1 –6.9 11.6 78.3

2005 93.5 4.5 6.5 3.8 78.8

2006 112.3 20.1 10.3 22.0 81.1

2007 137.3 22.3 25.8 21.3 80.5

2008 113.8 – 17.1 –7.5 – 19.4 78.3

2009 85.3 – 25.0 –17.7 – 27.0 76.5

2010 99.3 16.4 17.7 15.5 77.6

2011 98.8 – 0.5 – 1.5 – 0.1 76.4

2012 95.0 – 3.8 – 7.5 – 2.8 76.9

2013 97.2 2.3 2.8 2.1 77.5

2013 i 98.1 – 0.8 – 7.1 1.4 76.2

2013 ii 91.6 – 4.3 – 5.4 – 4.0 76.9

2013 iii 96.4 11.3 – 19.2 9.3 77.7

2013 iV 102.6 3.7 – 10.8 2.5 79.3

new orders received by the MEM industries

new orders received by the MEM industries

Source: 290 reporting Swissmem companies indexed, Q1 2001 = 100


change in % index of total new orders received

10

25%

20%

15%

10%

5%

0%

– 5%

– 10%

– 15%

– 20%

– 25%

200

180

160

140

120

100

80

60

40

20

02003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013


year/Quarter Totalin %

prev. yearof which domestic

of which foreign

2002 89.1 – 11.7 – 8.3 – 12.8

2003 85.7 – 3.8 – 3.9 – 3.8

2004 90.7 5.8 4.3 6.4

2005 93.4 3.0 – 0.9 4.3

2006 103.6 10.9 4.5 12.9

2007 118.0 13.9 14.8 13.6

2008 124.8 5.8 6.3 5.6

2009 99.5 – 20.3 – 16.6 – 21.2

2010 98.5 – 1.0 7.3 – 3.4

2011 100.6 2.1 6.5 0.8

2012 103.6 3.0 – 0.1 4.1

2013 106.5 2.8 1.4 3.1

2013 i 96.0 – 3.9 – 7.8 – 2.4

2013 ii 103.9 1.3 6.1 – 0.6

2013 iii 110.6 8.0 4.9 9.0

2013 iV 115.4 5.3 2.9 6.0

Turnover of the MEM industries

Turnover of the MEM industries


change in % index of total turnover


11

95%

90%

85%

80%

75%1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013


Capacity utilization of the MEM industries


long-term average capacity utilization in the mem industries is

86%

Source: KoF

Sales by the mem industries remained more or less frozen at

the same level for a number of years after the slump of 2009.

Since the second quarter of 2013, a clear upward trend has

been visible. looked at over the whole of 2013, sales rose by

2.8% compared to 2012.

large companies (with over 250 employees) were the main

contributors to this growth. The growth in revenues at Smes

was less dynamic. This more moderate growth in the business

figures for SMEs – the backbone of our industry – will require

monitoring.

The pick-up in orders is also having an impact on capacity

utilization in the industry. after constantly falling (on average)

since early 2011, and reaching a new low of 82.1% in 2013,

capacity utilization improved in the fourth quarter of 2013,

rebounding to 83.8%. The recent growth in order intake should

also help further improve capacity utilization in 2014.

Clear upswing

12


Exports of the MEM industries 2013Share of economic regions in %

other europe 4%

asia 18%

africa 2%

oceania 1%

latin america 3%

eu 28 59%

north america 12%

Slight rise in goods exports

From a regional perspective, development has also been

uneven in the export markets. The key sales market for

the mem industries remains the eu, with a 59.4% share in

total exports. after two years of declines, exports to the

eu countries saw a slight year-on-year rise of 0.8% in 2013.

in the fourth quarter alone, exports to the eu rose by 3.5%.

This development reflects the fact that the EU as a whole

managed to shake off its recession in 2013.

Following a sharp contraction in exports to asia in 2012,

trading stagnated last year, posting a nominal decline of 0.2%.

however, signs of a turnaround started appearing in this

regional market as well. In the final quarter of 2013, exports

to asia rose by 3.2% compared with the year-back period.

development continued positive in the uSa, the second-

largest sales market for the mem industries. here, exports

were already in positive territory in 2012, and this trend

continued over the past year, with respectable growth of 2.4%.

Source: Fca


the countries that border Switzerland account for

41%

of all mem industry exports?

13


2011 2012 2013

∆ in % to prev. yearCountry million ChF share in % million ChF share in % million ChF share in %

Europe * 43 781.7 63.9 41 302.8 63.9 41 723.7 63.8 1.0

Germany 18 427.5 26.9 17 440.7 27.0 17 237.7 26.4 – 1.2

France 4 254.6 6.2 3 876.7 6.0 3 939.6 6.0 1.6

italy 3 379.9 4.9 2 884.9 4.5 3 322.7 5.1 15.2

netherlands 2 633.8 3.8 2 621.6 4.1 2 642.8 4.0 0.8

uK 2 380.8 3.5 2 353.3 3.6 2 378.7 3.6 1.1

austria 2 317.4 3.4 2 146.3 3.3 2 205.6 3.4 2.8

Belgium 1 388.0 2.0 1 280.9 2.0 1 255.5 1.9 – 2.0

russia 915.2 1.3 1 044.5 1.6 1 085.2 1.7 3.9

Poland 838.7 1.2 857.4 1.3 995.3 1.5 16.1

Spain 1 232.7 1.8 930.8 1,4 871.4 1.3 – 6.4

Turkey 733.2 1.1 634.1 1.0 771.6 1.2 21.7

Sweden 822.7 1.2 804.7 1.2 717.5 1.1 – 10.8

czech republic 784.3 1.1 727.5 1.1 701.4 1.1 – 3.6

other 3 228.4 4.7 3 091.4 4.8 3 069.7 4.7 – 0.7

Asia 13 672.4 19.9 12 063.2 18.7 12 041.5 18.4 – 0.2

china 4 774.3 7.0 3 317.4 5.1 3 578.8 5.5 7.9

Japan 1 298.7 1.9 1 344.4 2.1 1 221.3 1.9 – 9.2

South Korea 1 059.0 1.5 906.7 1.4 1 005.9 1.5 10.9

india 1 030.6 1.5 873.3 1.4 979.9 1.5 12.2

Singapore 640.2 0.9 684.9 1.1 692.6 1.1 1.1

Saudi arabia 409.4 0.6 659.1 1.0 682.8 1.0 3.6

united arab emirates 848.0 1.2 819.1 1.3 570.8 0.9 – 30.3

hong Kong 582.4 0.8 618.1 1.0 532.7 0.8 – 13.8

other 3 029.8 4.4 2 840.2 4.4 2 776.7 4.2 – 2.2

Americas 9 021.8 13.2 9 343.1 14.5 9 497.0 14.5 1.6

uSa 6606.8 9.6 6785.8 10.5 6950.5 10.6 2.4

Brazil 759.3 1.1 734.7 1.1 710.7 1.1 – 3.3

canada 542.1 0.8 567.4 0.9 520.6 0.8 – 8.3

mexico 372.6 0.5 406.5 0.6 509.3 0.8 25.3

other 741.0 1.1 848.7 1.3 805.9 1.2 – 5.0

Africa 1 245.8 1.8 1 126.1 1.7 1 326.7 2.0 17.8

South africa 391.4 0,6 303,5 0,5 277.9 0.4 – 8.4

libya 18.9 0.0 93.8 0.1 259.1 0.4 176.4

other 835.5 1.2 728.8 1.1 789.7 1.2 8.4

oceania 820.2 1.2 758.2 1.2 769.0 1.2 1.4

australia 739.9 1.1 677.7 1.0 693.0 1.1 2.3

other 80.3 0.1 80.5 0.1 76.0 0.1 – 5.6

MEM industries total 68 541.8 100.0 64 593.3 100.0 65 357.9 100.0 1.2

Exports of the MEM industries 2013Shares by country

Source: oZd* europe: eu28 & rest of europe

14


Exports of the MEM industries 2013Share of product fields

Vehicles 8%

metalworking 19%

electrical engineering, electronics 17%


Precision instruments 22%

DiD you knoW ThAT …

medical instruments and appliances have increased their proportion of exports by

10 percentage points in the last 10 years?

Recovery in the majority of product sectors

with the exception of mechanical engineering, where exports

contracted by 0.2% year on year, exports rose for all key

groups. The largest increase was for precision instruments,

which were up by 3.7%. in the case of metals and electronics/

electrical engineering, the gains were more moderate

(+0.7% and +0.1% respectively).

mechanical engineering remains the most important export

sector for the mem industries. That said, the importance

of his key group has been steadily declining over the last

10 years. in 2003, its share of exports was a substantial

41.1%. By 2013, this had diminished to 33.7%.

The biggest gains were recorded by the precision instruments

group. Ten years ago Switzerland was exporting precision

instruments to a value of chF 10.1 billion, corresponding to a

17.8% share of exports. in the meantime, these exports have

risen to chF 14.6 billion (+44.5%), giving precision instruments

a share of 22.4% of total exports. The export shares of the

metals and automotive groups remained more or less constant

over this period. above all, precision instruments have

recorded a steady increase over the last few years.

Source: Fca

15


2011 2012 2013

∆ in % to prev. yearProduct

million ChF share in %



Mechanical engineering 25 072.8 36,6 21 980.0 34.0 21 946.4 33.6 – 0.2

machine tools for metalworking 3 808.8 5.6 3 700.5 5.7 3 472.7 5.3 – 6.2

Pumps, compressors, fans 2 489.2 3.6 2 347.2 3.6 2 565.3 3.9 9.3

Turbines, power plants, etc. 1 953.4 2.8 1 918.2 3.0 2 049.0 3.1 6.8

Graphic machinery 1 529.6 2.2 1 448.9 2.2 1 358.9 2.1 – 6.2

heating and refrigeration technology 1 324.7 1.9 1 265.8 2.0 1 319.5 2.0 4.2

Textile machinery 1 476.2 2.2 1 071.1 1.7 1 229.3 1.9 14.8

household appliances 1 033.2 1.5 1 013.3 1.6 928.3 1.4 – 8.4

Packaging and filling machinery 926.5 1.4 947.1 1.5 880.2 1.3 – 7.1

office machinery 920.5 1.3 825.0 1.3 859.4 1.3 4.2

lifting and handling equipment 791.5 1.2 757.8 1.2 762.0 1.2 0.6

industrial heat treatment equipment 743.4 1.1 690.9 1.1 724.4 1.1 4.8

Plastics machinery 775.1 1.1 694.8 1.1 715.8 1.1 3.0

Food processing machinery 509.3 0.7 489.3 0.8 500.0 0.8 2.2

other 6791.4 9.9 4 810.1 7.4 4 581.6 7.0 – 4.8

Precision instruments, apparatus and devices 14 010.5 20.4 14 120.6 21.9 14 645.4 22.4 3.7

medical instruments and apparatus 8 614.2 12.6 8 849.0 13.7 9 335.0 14.3 5.5

mech. instruments for measuring, testing 3 771.6 5.5 3 710.4 5.7 3 722.2 5.7 0.3

optical appliances 1 067.5 1.6 1 036.8 1.6 1 079.6 1.7 4.1

Survey instruments 557.2 0.8 524.4 0.8 508.6 0.8 – 3.0

Electrical engineering/electronics 11 781.8 17.2 11 371.8 17.6 11 385.8 17.4 0.1

electrical switchgear and cables 3 647.3 5.3 3 577.1 5.5 3 625.1 5.5 1.3

Power generation apparatus and electric 2 956.2 4.3 2 918.2 4.5 2 975.2 4.6 2.0

electrical apparatus such as magnets, batteries, etc. 2 085.9 3.0 1 904.0 2.9 1 853.3 2.8 – 2.7

electrical and electronic components 1 791.3 2.6 1 718.2 2.7 1 633.7 2.5 – 4.9

Telecommunication equipment 616.0 0.9 643.6 1.0 711.2 1.1 10.5

controlling, signalling and meas. instruments 685.0 1.0 610.7 0.9 587.3 0.9 – 3.8

Metals 13 023.6 19,0 12 011.2 18.6 12 090.5 18.5 0.7machine components 2 419.3 3.5 2 285.6 3.5 2 418.8 3.7 5.8

Tools and moulds 2 041.6 3.0 2 068.0 3.2 2 165.6 3.3 4.7

non-ferrous metals 2 464.6 3.6 2 097.7 3.2 2 047.4 3.1 – 2.4

other 6 098,1 8.9 5 559.9 8.6 5 458.7 8.4 – 1.8

Vehicles 4 653.1 5,9 5109.8 7.9 5 289.9 8.1 3.5

road vehicles 2 109.3 3.1 2 171.0 3.4 2 169.3 3.3 – 0.1

aircraft and spacecraft 1 603.2 2.3 1 920.0 3.0 1 944.7 3.0 1.3

rolling stock 912.0 1.3 987.4 1.5 1 159.0 1.8 17.4

other 28.6 0.1 31.4 0.1 16.9 0.1 – 46.2

MEM industries total 68 541.80 100.0 64 593.30 100.0 65 357.90 100.0 1.2

Exports of the MEM industriesShare of product fields

Source: Fca

16

– 20 000 – 10 000 0 10 000 20 000 30 000 40 000


Balance of trade in goods 2013in chF million

Precision instruments

Vehicles

electrical engineering/electronics

metallurgical industry

mechanical engineering

watches

Pharma

Textiles

energy sources

Foodstuffs

all goods

« import surplus export surplus »

Surplus in the balance of trade

little momentum was to be seen in Switzerland's foreign trade

in 2013. according to the statistics published by the Swiss

customs administration (eZV), exports and imports remained

virtually on a par with the previous year. at chF 23.96 billion

(2012: chF 23.83 billion), the trade surplus hit a new record.

That said, chF 500 million, the monthly surplus for december

2013 was the lowest recorded since march 2009. The most

marked growth occurred in exports by the food, drink and

tobacco sector (+7.1%), with a standout performance by coffee

exports, at +17%.

The Swiss mem industries recorded an import surplus of

chF 1,939 million. The majority of this was accounted for by

the automotive area, with vehicle imports far exceeding

exports (chF 15,896 million vs. chF 5,290 million). Total

exports from Switzerland to north america rose by 5% last

year, while deliveries to canada increased by 8% and those

to the uSa by 4%. meanwhile, demand from europe and

asia, which together accounted for 80% of sales, contracted

by 1% respectively (eu: –1%).

with around 332,000 full-time employees, the mem industries

together continue to make up the largest manufacturing

employer in Switzerland. Viewed over the last 10 years,

headcount in both the mem industries and the manufacturing

sector as a whole has risen slightly.

Source: Fca

17


industrial workforce MEM industries

year Employees ∆ in % Employees ∆ in % share in %

2001 599 832 1.1 333 261 1.7 55.6

2002 583 211 – 2.8 321 113 – 3.6 55.1

2003 561 911 – 3.7 308 149 – 4.0 54.8

2004 560 959 – 0.2 310 044 0.6 55.3

2005 562 525 0.3 311 432 0.4 55.4

2006 576 983 2.6 324 245 4.1 56.2

2007 594 608 3.1 339 363 4.7 57.1

2008 614 816 3.4 355 799 4.8 57.9

2009 582 417 – 5.3 332 411 – 6.6 57.1

2010 579 163 – 0.4 329 426 – 0.9 56.8

2011 585 475 1.1 336 609 2.2 57.5

2012 587 817 0.4 335 552 – 0.3 57.1

2013 574 280 – 2.3 332 283 – 1.0 57.8

data processing/watches 17%

industrial workforce 2013Sectors in %

metallurgical industry 15%

other manufacturing industry 9%

rubber and plastics 6%

Textiles 2%

wood/graphic industry 10%

Pharma 6%

Foodstuffs 9%

machinery/tools 20%

electronics 6%

industrial workforce

Source: BeSTa

Source: BeSTa

18

SWISSMEM PANORAMA 2014 – VOCATIONAL TRAINING

Young people who have completed a vocational training

course can embark on their career with the competencies and

knowledge they need to find their way. By starting young,

they fill their rucksack with a lot of professional savoir faire

and a good sense of entrepreneurial contexts.

The dual vocational training system ensures that young people

are trained in professions that will remain in demand and as

such is one of the reasons for Switzerland’s low levels of youth

unemployment compared to other countries. In addition to

integrating the young professionals, it also paves the way for

individual development. Vocational training is not a cul de

sac, but an open gate to a wide range of training paths to suit

individual inclinations and talent.

We will be showing you just how varied these paths can be

on the following pages. Marcel Pawlicek (right in the picture) is

CEO of Burckhardt Compression, one of the world’s leading

suppliers of reciprocating compressors with a workforce of over

1,000. He started his career more than 25 years ago as an

apprentice design engineer with Sulzer-Burckhardt. Vladimir

Stojilovic is a multi-skilled mechanic in his fourth year of

training. Where will his path lead him? It doesn’t really matter

if he becomes a skilled craftsman or a manager. By opting

for an apprenticeship in the MEM industries he has chosen a

career path that offers a wide range of opportunities.

DUAL VOCATIONAL TRAINING – A GOLD STANDARDVocational training provides a first step into professional life that is both geared to real-world requirements and offers good pros-pects. It equips apprentices for a successful career in a skilled pro-fession and opens the door to a wide range of opportunities.

P104663_Swissmem_Panorama_2014_e012_AW.indd 18 13.05.14 15:25

INDUSTRY FOREWOMAN

From practitioner to team leader

Over the years, Claudia Juric has acquired in-depth

expertise in the production of electronic components and

finished products. After taking additional training to be-

come an industry forewoman, she was promoted to team

leader. In addition to specifying technical procedures, she

is responsible for staff management and development.

ENTREPRENEUR

From mechanic to companymanaging director

Roger Nüssler has transformed his business from a

simple contract manufacturer into an international leader

in dimensional metrology. His recipe for success: a

combination of traditional craftsmanship and a keen

sense for new developments.

TECHNICAL MANAGER

From trainee to all-rounder

After her design apprenticeship, Fabienne Richli trained

as a technical manager. This additional training has

allowed her to take on a new role and she now acts as an

important link between development and production.

INTERNATIONAL MANAGEMENT

From vocational trainee to academic and manager

Otto Preiss has always combined study with work at

various levels. This has gradually turned the former

electronics trainee into an engineer with a doctorate and

head of an international business unit.

Higher vocational training Universities

TERT

IARY

LEV

EL

Direct access

Additional qualifications or professional experience

SECO

NDA

RY L

EVEL

IISE

CON

DARY

LE

VEL

I

Obligatory schooling

Fed. higher prof. examination Federal diploma

Fed. vocational examination Federal certificate of proficiency

Passerelle

Technical collegeTechnical college diploma

Universities of applied sciences

Master, Bachelor

ETH / Universities Doctorate, Master, Bachelor

Technical middle schools

Specialist high school certificate

High school High school certificate

Basic vocational trainingFederal certificate of competence (3-4 years),

Federal vocational certificate (2 years)

Advanced vocational school Advanced vocational

certificate

DUAL VOCATIONAL TRAINING – A GOLD STANDARD

Education system: compatible and flexible


MEETING NEW CHALLENGES IN A TEAM Her work calls for efficiency, high quality and constant improvement of procedures: Claudia Juric and her 18-strong team are responsible for manufacturing fire and smoke alarms. After initial training in a different sector of industry, this single mother acquired a lot of industrial expe-rience, trained as an industry forewoman and now appreciates working with her team to maximize their achievements.

INDUSTRY FOREWOMAN


21


Claudia Juric, what do you particularly remember from your training?Above all, I think we learned a lot about networked thinking.

We went into depth on the interdependencies between the in-

dividual departments in the company, production requirements

and the implications for management. Because of this, I still try

today to draw a common thread. You can only organize yourself

appropriately and constantly re-adapt when the different areas

– production, improvement processes and staff management –

are coordinated.

Where are the challenges for your work?My team produces fire and smoke alarms for the entire Europe-

an market. We’ve recently had various restructuring exercises

in our unit with the aim of realigning production. Any process

like this always places special demands on the people involved.

We operate in a dynamic market environment to which we con-

stantly have to re-adjust.

What do you find particularly enjoyable about your work?I like working in a team and particularly enjoy the staff manage-

ment and development aspect. My previous job in electronic

component production enabled me to gain experience in

specialist technical areas. Now that I’ve trained as an industry

forewoman, I’ve added an additional level. The work has so

many facets and constant optimization is always adding new

challenging objectives. Did you know that last year 50 people

passed the higher professional examination and were awarded

their federal industry foreman/forewoman diploma?

Employment and career milestones

Since 2014 – Production Manager at Siemens Switzerland, Building Technologies Division, International Headquarters Zug

Since 2005 – Employed at Siemens Switzerland, Building Technologies Division, International Headquarters Zug

From 1997 to 2005 – Employed at Huber & Suhner, Pfäffikon

1997 – Completed retail apprenticeship

About the company

Siemens Building Technologies is part of Siemens Schweiz AG and provides of building safety, personal safety and building automation solutions.

DID YOU KNOW THAT

50people were awarded their federal diploma of Production Manager AFD in 2013?


Roger Nüssler has moulded a classical, domestic supply business into a modern, internationally-oriented niche supplier. From an out-lying region of Switzerland, he delivers high-precision dimensional metrology styli to companies throughout the world. Extensive knowl-edge of specialized production methods, combined with innovative product developments, have allowed the company to position itself successfully in new markets.

WINS NEW MARKETS WITH QUALITY

ENTREPRENEUR


2500

2000

1500

1000

500

02009/102008/9 2010/11 2011/122007/8

23


Source: SFSO

Roger Nüssler, what do you remember from your time as an apprentice?II received a traditional apprenticeship as a mechanic. It was

just as the transition from mechanical to computer-assisted

manufacturing was taking place. But even today, I still value

what I experienced back then. You can’t get a feel for a material

and its characteristics just from a computer. That’s why I think

it’s still important today to let young apprentices have this one-

to-one experience during their training and lead them step by

step towards modern manufacturing methods.

Where do you see the challenges for the dual vocational training system?One of the strengths of the dual vocational training system is

that it gives young people a direct involvement in the compa-

ny’s operations and there is a personal relationship between

them and their trainer. By working in a real-life company

environment, young people are better able to develop their

social skills and acquire practical knowledge. Values, such as

meeting deadlines, quality and a service mindset are still in de-

mand internationally and people are prepared to pay for them.

But the only real way to inculcate these values is if the young

people are in the same place as their mentors at the same time.

So, while training should be state of the art in terms of technol-

ogy and specialist skills, it should not neglect the underlying

values.

How do you go about obtaining specialist staff?Our company operates in a small but very internationally-ori-

ented niche market. When it comes to certain manufacturing

processes, ours is the only company in the world with the

relevant skills. The employment market can’t provide any

specialists in these fields. Although we work with universities

on innovation, when it comes to core skills that are specific to

the company, we have to rely on training and developing our

employees ourselves.


Current position – company managing director and owner

Nüssler Precision AG, Bonaduz

1995 – Joined the family business

1993 – Federal master mechanic’s diploma

1991 – Foundation course in precision engineering, Insterstate Technical University Buchs

1988 – Completed apprenticeship as mechanic

About the company

Nüssler AG specializes in the production, development and global sales and distribution of styli and accessories for dimensional metrology.

Students in higher professional training

Mechanical engineering, metalworkingElectronics, automation


WIDE-RANGING CONTACTS & EXCITING PROJECTSAs a technical manager, Fabienne Richli is in demand in many places: introducing innovations, optimizing procedures, sup-porting production. She never gets bored of her job. At present, she is working in Bulgaria for a year. In the company’s branch operation, she is helping to transfer knowledge to Bulgaria, set up new manufacturing processes and improve the efficiency of existing production processes by applying lean management principles.

TECHNICAL MANAGER


25


Fabienne Richli, how did your apprenticeship help you prepare for your subsequent professional life?I particularly appreciated the combination of theory and

practice. I still find it exciting even now. Even while we were

apprentices, we had the opportunity to test ideas in real-life

conditions and develop them further. At the end of the day, you

could see what you had done and what worked. This interplay

between planning, practical implementation and further deve-

lopment is also very important in my current job and makes a

good mix.

Women in technical professions – what’s your experience?As a child, I was always interested in technical things, but

I could also have imagined myself training to become an

architectural draughtsperson. In the end, though, I found an

apprenticeship as a design engineer. Since my stepfather is a

construction equipment mechanic, I started to pick up quite

a lot when I was little. For example, I was allowed to go with

him to the workshop and try things out for myself. At work, it

makes no difference whether you’re a man or a woman. I still

lack some experience though, which is why I would still like to

have a look at different areas.

How do you plan to develop your career?Now that I’ve trained as a technical manager, I would first like

to gain more practical experience and have a go at tackling

new tasks. In the last two years, I’ve helped to set up a pro-

duction facility at our Bulgarian branch and was on the spot

at various times for training courses. Spending one year there

will provide me with new and stimulating experiences. One

challenge, for example, is the language and the Cyrillic script.

But I can make myself understood quite well using English

and a few phrases in Bulgarian. Luckily too, I already know a

few people in Sofia. It will certainly be an exciting year!


Current position – Technical manager in the Process Engineering department at Reichle & De-Massari AG, Sofia (Bulgaria)

Technical manager in the Process Engineering department at Reichle & De-Massari AG, Wetzikon

2009 – Completed an apprenticeship as design engineer with federal certificate of competence, Mettler Toledo, Greifensee

About the company

Reichle & De-Massari (R&M) is one of the leading suppliers of passive cabling solutions for high-grade communication networks.

DID YOU KNOW THAT

715people were awarded their federal certificate of proficiency in technical management in 2012?


HIGH-TECH DEVELOPMENT AND GLOBAL SUPPORT Wind turbines, electric cars, trains: they all need energy conversion systems of the sort that Otto Preiss develops with his global team. His research-intensive field of work requires a constant exchange of people and knowledge with the universities. He has practised the same inter-dependency throughout his professional career. Hence the erstwhile vocational student gained a doctorate, and the practical skills trainee became a manager with international commercial responsibilities.

INTERNATIONAL MANAGEMENT


0 50 100 150 200 250 300 350 400 450

2500

2000

1500

1000

500

0

27


Otto Preiss, what have you retained from your time as an apprentice?What has particularly stayed with me is an understanding of

the production department’s needs. As a trainee, I was directly

involved in a variety of processes. As a result, I am still consci-

ous that every task needs someone to actually carry it out. No

matter how many innovations are developed in the laborato-

ries, you will always eventually need someone to put them into

practice. My career has given me a lot of practical experience of

this interdependence.

You have climbed every rung of the educational ladder. What were the particular challenges?Although it is essentially possible to pass through from one

stage to the next, it is not always very easy to do so in an

international environment. Moving from a Swiss university of

applied science to an American Master’s programme required

an extra effort on my part. Then some explanation was needed

when I moved on to do a doctorate in Switzerland. Something

else special was the fact that because I had been working, I

was actually older than some of my professors. Overall though,

I found this difference very stimulating, and there were always

plenty of interesting discussions.

How do things stand with training in Switzerland? And how do you develop your workforce?From my experience, I would say that training in Switzerland is

of a high standard. However, in addition to quality, quantity is

an issue. We are not able to recruit all the specialists we need

in Switzerland, so we have to look abroad. The very internati-

onality of our company means that our employees come from

very many different countries and have very different levels

of training. As a company, we try to support our employees’

development and therefore welcome the dialogue between the

different business units and countries. Of course, this involves

a lot of change, and we make things easier by providing additio-

nal services such as crèches and counselling. Our teams are

attuned to cultural diversity and ongoing knowledge transfer.


Current position – Head of the global Power Conversion business unit, ABB Management Services Ltd., Switzerland

2004 – Doctorate, EPFL

1995 – Master’s degree in Computer Science, University of Colorado

1985 – Electrical engineering diploma HTL, Brugg-Windisch

1982 – Completed an apprenticeship as a communications and electronic equipment fitter (currently called electronics engineer)

About the company

ABB is a global leader in energy and automation solutions. It operates in some 100 countries and employs a workforce of 150,000.

Source: ingCH

Electrical engineering

Mechanical engineering

Final exams at universities

Universities Universiities of appl. sciences


28

160

150

140

130

120

110

100

90

802009 2010 2011 2012 2013

SwiSSmem Panorama 2014 – Production and location factorS

Change over previous year

in %Country Currency 2011 2012 2013

euro countries 1 eur 1.234 1.205 1.231 2.2

uSa 1 uSd 0.887 0.938 0.927 – 1.2

uK 1 GBP 1.421 1.486 1.450 – 2.4

Japan 100 JPY 1.113 1.176 0.951 – 19.1

Brazil 1 Brl 0.531 0.481 0.431 – 10.4

russia 100 ruB 3.020 3.019 2.910 – 3.6

india 100 inr 1.905 1.757 1.590 – 9.5

china 1 cnY 0.137 0.149 0.150 0.7

«

«

Source: SnB export-weighted index of currency exchange rates of major trading partners indexed, Jan 1999 = 100

Source: SnB

Exchange rate index

Swiss franc exchange rate

3 | Production and location factors

real exchange rate indices nominal exchange rate indices

appreciation of cHf

depreciation of cHf

29

0 20 30 40 5010 60


Euro

norway 57.85

Switzerland 46.55

Sweden 43.99

Belgium 41.91

west Germany 38.88

denmark 38.13

Germany 36.98

france 36.77

netherlands 36.69

austria 33.05

luxembourg 30.21

Japan 29.56

ireland 29.07

italy 27.48

uSa 25.87

uK 25.14

east Germany 23.57

Spain 22.41

Greece 14.61

czech republic 10.15

Hungary 7.65

Poland 6.65

romania 3.78

Bulgaria 2.86

Euro Euro

37.20 20.64

29.72 16.83

24.21 19.78

21.01 20.90

22.12 16.76

28.17 9.96

21.16 15.83

18.61 18.16

18.67 15.02

17.26 15.79

20.46 9.75

16.40 13.16

19.82 9.25

15.46 12.02

17.16 8.70

17.97 7.17

14.42 9.15

14.11 10.30

8.57 6.03

5.75 4.40

4.21 3.44

4.54 2.11

2.53 1.25

2.08 0.78

Source: institut der deutschen wirtschaft, cologne

Labour costs in the manufacturing sector in 2012

Hourly wage non-wage labour costs

the minimum exchange rate of cHf 1.20 to the euro has had

a positive impact on companies in the mem industries, giving

them a reliable foundation for their products and services,

structures and processes. the Swiss national Bank’s adher-

ence to the exchange rate floor was still appropriate in 2013,

as the Swiss franc remained overvalued. moreover, there

were no indications of inflation, and economic recovery was

still not assured.

the uS dollar, the second most important trading currency for

the mem industries after the euro, lost ground against the

Swiss franc last year (–1.2%). the other trading currencies also

lost value, in particular the Japanese yen, which was down

19.1% against the Swiss franc.

in the longer term, the continued strength of the franc led to a

relative increase in labour costs in an international comparison.

this is proving to be a damper on Switzerland’s appeal as a

business location. while hourly wage costs in Switzerland

have traditionally been high, the last few years has also seen

a rise in non-wage labour costs.

Exchange rate floor leads to stability

30


0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

Source: innovation union Scoreboard 2013

Innovation ranking 2012

Switzerland

Sweden

Germany

denmark

finland

netherlands

luxembourg

Belgium

iceland

united Kingdom

austria

ireland

france

eu 27

Slovenia

cyprus

estonia

norway

italy

Spain

Portugal

czech republic

Serbia

Greece

Slovakia

Hungary

croatia

malta

lithuania

Poland

macedonia

in 2013, Switzerland once again

topped the rankings of innovative

nations in europe. this was

confirmed by the “Innovation Union

Scoreboard” of the eu commission.

Particular strengths of Switzerland

include scientific publications

and international patent applications.

However, compared to the eu coun-

tries it is below average as regards

in-company research activities and

research collaborations by Smes.

Research and development expendituredomestic corporate-sector expenditu-

re on in-house research and develop-

ment increased from cHf 11,979

million to cHf 12,819 million between

2008 and 2012. By contrast, expen-

ditures by Swiss affiliates abroad

declined slightly from cHf 15,769

million to cHf 15,045 million.

Between 2008 and 2012, the number

of people employed in research and

development (full-time equivalents)

grew from 39,832 to 47,750.

Innovation as the elixir of life

31


* Source: SfSo. the mem industries comprise metals, mechanical engineering, and high-technology instruments, as well as information and communication technologies Private sector only

* Source: SfSo Specialists in planning and developing new knowledge, products and processes Private sector only

Expenditure on research and developmentr&d investment in Switzerland in 2012*

Sectors in %

machinery, metal, high-technology instruments 32%

other sectors 34%

foodstuffs 1%

Total: CHF 12,891 million

MEM industries total: CHF 4,081 million chemicals/pharma 34%

machinery, metal, high-technology instruments 40%

other sectors 34%

foodstuffs 1%

Total in full-time equivalents: 19,199

Overall total of R&D personnel in full-time equivalents: 47,750

chemicals/pharma 25%

R&D personnel by sectorresearchers by sector in Switzerland in 2012*

Sectors in %

32

30 000

25 000

20 000

15 000

10 000

5 000

0

1 000 000

800 000

600 000

400 000

200 000

0

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13


CO2 emissions of Swissmem membersin tonnes of co2

Swissmem member companies’

energy needs declined slightly in

2013 compared with 2012. the

savings achieved were partly com-

pensated for by a slight improvement

in the economic situation and the

cooler weather. the downward trend

in energy requirements observed

since 1990 continues, but the curve is

gradually flattening out. Overall, the

mem industries’ energy requirements

have fallen by some 40% since 1990.

co2 emissions are also following a

marked long-term downward trend.

in 2013, the overall emissions of

Swissmem member companies were

some 51% lower than in 1990.

compared with 2012, however, co2

emissions showed practically no

change.

Heating oil consumption increased

slightly compared with 2012 due

to the cooler weather, but still remains

at an extremely low level. 88% less

oil was consumed in 2013 than in

1990, representing less than 6% of

total energy consumption. the most

important sources of energy for the

mem industries are electricity, whose

share remains unchanged at some

52%, and natural gas, which now

accounts for almost 35% of energy

requirements. alternative sources

of energy such as district heating,

wood and waste continue to play

a subsidiary role and lie in the single-

digit percentage range.

total Petroleum products

Gas coal/coke

Source: Swissmem

Source: Swissmem

total electricity

Gas Petroleum products

Energy as a key locational factor

Energy consumption of Swissmem membersin terajoules = 280.000 kwh

33

0 0.04 0.08 0.12 0.16 0.20 0.24


DID yOu knOw THaT …

Swissmem member companies have reduced their co2 emissions by

51%since 1990.

European industrial electricity prices in 2013cHf /kwh, medium voltage

italy

Germany

ireland

Slovakia

Greece

latvia

Spain

eu 27

united Kingdom

Switzerland

Portugal

latvia

austria

Belgium

denmark

czech republic

luxemburg

Hungary

Slovenia

netherlands

croatia

turkey

norway

france

Poland

romania

Sweden

finland

Sources: eurostat; SfSo

34


year

number of work

disputes

number of companies

affected

Max. number of workers

involved

approx. num-ber of

working days lost

2002 4 535 21 947 21 447

2003 9 189 8 111 6 141

2004 8 1 117 24 399 38 915

2005 5 11 338 1 392

2006 3 4 635 7 870

2007 2 571 5 083 7 083

2008 8 59 10 160 13 844

2009 3 3 159 395

2010 3 3 107 2 287

2011 7 10 1 007 2 837

2012 6 46 2 697 2 382

average for the whole of Switzerland 2002 to 2012 5 232 6 786 9 508

Source: seco; no more recent data available1) Strikes that lasted at least one working day

new collective labour agreement for the MEM industries

at an average of 5 per year, the number of industrial disputes

in Switzerland is far below the international equivalent. the

reason for this lies in the decades-old tradition of “social

partnership”, whereby clear rules for conflict resolution are

laid down in collective labour agreements (“GAVs”), thus

precluding militant actions such as strikes.

in mid-2013, the social partners in the Swiss mechanical and

electrical engineering industries agreed on a new GAV. Under

the new agreement, the companies benefit from extra flexi-

bility in working hours in order to adjust to the increasing

fluctuations in the market. In return, regionally differentiated

minimum wage levels have been enshrined in the GAV for the

first time. Already progressive, the GAV for the MEM industries

has now been further modernized and aligned with societal

developments. The new GAV came into effect on 1 July 2013

and is valid until 30 June 2018.

when viewed by numbers of companies, the mem sector is

made up primarily of micro-enterprises (businesses with less

than 10 employees) and Smes (10 to 250 employees). looked

at in terms of headcount, by contrast, the medium-sized and

large companies account for the lion’s share. ge companies

account for the lion’s share.

Overall Swiss strike statistics 1)

35

SwiSSmem Panorama 2014 – induStrY Sector Structure

Micro- enterprises

Small companies

Medium-sized companies

Large companies Total

2001 2011 2001 2011 2001 2011 2001 2011 2011

metal production and processing 150 155 75 79 46 40 19 17 291

manufacture of metal products 6 095 6 340 1 425 1 416 261 270 23 20 8 046

manufacture of data-processing de-

vi ces, electronic and optical products 1 339 1 450 507 527 262 276 67 74 2 327

manufacture of electrical equipment 544 591 193 207 85 65 32 33 896

mechanical engineering 1 398 1 458 670 635 287 308 69 48 2 449

manufacture of automobiles and

automotive components 147 155 48 44 16 11 4 7 217

other vehicle construction 161 205 24 32 12 9 4 6 252

Total 9 834 10 354 2 942 2 940 969 979 218 205 14 478

Source: SfSo micro-enterprises: 0 to 9 ftes, small companies: 10 to 49 ftes, medium-sized companies: 50 to 250 ftes, large companies: 250+ ftes ftes = full-time equivalents

Company size structurecompany size structure in the Swiss mechanical and electrical engineering industries in 2011

by number of employeesby number of companies

Company size structure in the MEM industries

4 | Industry sector structure

large companies 33%Small companies 20%

medium-sized companies 7%

large companies 1%

micro-enterprises 72%

micro-enterprises 10%

Small companies 22%

medium-sized companies 35%

Source: SfSo

36


Breakdown by gender 2010 2011 2012 2013

female 17.6 17.6 17.7 17.4

male 82.4 82.4 82.3 82.6

Breakdown by area of activity 2010 2011 2012 2013

administration/finance/services 15.1 15.4 15.9 16.2

Sales/marketing 5.6 6.1 6.4 6.5

information technology 4.1 3.9 4.5 4.2

Production/assembly/maintenance 51.0 47.9 45.2 45.2

research/development/planning 16.7 18.3 19.6 19.9

technical sales force/training 7.5 8.2 8.4 8.1

workforce structure by gender and area of activityin %

Commitment to the next generation

for years now, there has been a shortage of skilled labour in

the MEM industries. This finding was once again confirmed

by a survey carried out by the BaKBasel institute in autumn

2013. 75% of the firms in the MEM industries are having

trouble recruiting skilled employees. more than one in four

companies within the mem industries (28%) have vacancies

for qualified staff that they are unable to fill.

this shortage of skilled labour is not just apparent among

international specialists, but at all levels of the mem indus-

tries. the continued fostering of dual training and further

investment in education are therefore key issues for the mem

industries.

For demographic reasons, the fight for trainees is set to

intensify still further in the next few years. consequently,

the promotion of young talent and efforts to inspire young

people to take up a career in industry need to be stepped

up further. alongside young talent, there is a great deal of

untapped potential among, in particular, women and the

over-50s, which the mem industries will need to exploit in

a targeted fashion over the next few years.

the mem industries train more than 20,000 apprentices,

making them one of the largest training providers in

Switzerland. in 2013, a total of 9,096 apprentices were

being trained in Swissmem companies alone. mechanical

engineering is the biggest area for apprenticeships,

offering 3,054 places.

in the professions supported by Swissmem (mechanical

engineering, automation, plant engineering, electronics,

design, mem trade professions), the apprentice population

has grown slightly despite a difficult economic environment:

between 2009 and 2012, the number of apprenticeships

rose from 17,762 to 17,795.

DID yOu knOw THaT ...

5%of apprenticeship places with Swissmem companies could not be filled in 2013?

Source: Swissmem

37


new trainees Total

Occupation 2010 2011 2012 2012

mechanical engineering 2 275 2 310 2 145 7 572

automation 1 007 1 052 1 025 3 471

engineering design 521 519 561 2 026

electronics 554 574 547 1 930

Plant engineering 259 260 237 944

Business management 617 644 613 1 852

information technology 1 689 1 737 1 873 6 311

Total 6 922 7 096 7 001 24 106

Source: Swissmem; trainees in Swissmem member companies

Source: fSo; numbers at all business sectors

Trainees by occupational category 2013 Sectors in %

Trainees

Plant engineering 4%

it 6%

other 9%

automation 12%

engineering design 13%

electronics 7%


Business management 15%

38

1 600 000

1 400 000

1 200 000

1 000 000

800 000

600 000

400 000

200 000

02003 2004 2005 2006 2007 2008 2009 2010 2011 2012

SwiSSmem Panorama 2014 – tHe mem induStrieS in an international context

Region 2010 2011 2012 share in %

eu 510 813 519 674 517 512 36.5

rest of europe 46 027 48 367 51 714 3.6

europe 556 841 568 040 569 226 40.1

north america 202 903 216 878 222 691 15.7

central and South america 141 062 147 982 157 705 11.1

asia 307 711 382 431 403 662 28.4

africa 42 904 42 728 42 546 3.0

oceania 21 105 23 254 23 045 1.6

Total 1 272 525 1 381 312 1 418 874 100.0

Source: SnB

Source: SnB

Headcount of industry overall by global region

Swiss industries’ headcount abroad

industry total of which mem industries

5 | The MEM industries in an international context

39

180 000

160 000

140 000

120 000

100 000

80 000

60 000

40 000

20 000

02004 2005 2006 2007 2008 2009 2010 2011 2012


Source: SnB

Headcount of foreign industrial companies in Switzerland

Between 2009 and 2012, companies in the mem industries

increased their headcount abroad from 473,462 to 547,511

employees (+16%). this increase occurred parallel to the

growth in the number of full-time employees in Switzerland,

which rose from 332,411 to 335,552 over the same period

(+1%). the rise in the number of jobs abroad is therefore

striking. the strongest headcount increase in recent years

occurred in asia. the number of manufacturing employees

has increased from 175,552 to 403,662 within ten years,

a rise of 130%.

However, there was no reduction of headcount at the bottom

line in Switzerland during this period, despite the difficult

environment. These figures support the hypothesis that increa-

sed involvement abroad does not have to lead to a reduction

of headcount domestically. the Swiss mem industries emplo-

yed a total of 883,063 people worldwide.

foreign direct investment in Switzerland remained on a par

with the previous year in 2012. Headcount at foreign mem

industry firms’ sites in Switzerland rose by 0.1% to 91,256.

a multi-year comparison of headcount for all industries reveals

a significant expansion in the number of people working in

foreign companies in Switzerland. Between 2004 and 2011,

this figure increased by 26.8% to 157,220 employees. However,

between 2011 and 2012, headcount decreased slightly (by

0.4% to 156,750 employees).

From these figures we can conclude that, despite the difficult

years of the recent past, Switzerland remains an attractive

centre for industry and research. that said, the favourable

economic and political environment and liberal employment

market are under pressure due to various political initiatives.

there is a danger that the country's attractiveness will

diminish perceptibly in the years ahead.

Higher headcount for Swiss MEM companies abroad


40

350 000

300 000

250 000

200 000

150 000

100 000

50 000

02005 2006 2007 2008 2009 2010 2011 2012


Region 2010 2011 2012 share in %

eu 116 592 117 934 114 118 34.5

rest of europe 28 885 23 937 24 595 7.4

europe 145 477 141 871 138 713 41.9

north america 66 274 85 715 89 455 27.1

central and South america 40 686 33 162 37 377 11.3

asia 39 067 45 494 56 457 17.1

africa 3 254 2 988 3 020 0.9

oceania 4 802 5 084 5 373 1.6

Total 299 560 314 314 330 394 100.0

Source: SnB

Source: SnB

Capital holdings of total industry by global region

Foreign capital holdings of Swiss industryin cHf million


41

125 000

100 000

75 000

50 000

25 000

02005 2006 2007 2008 2009 2010 2011 2012


in 2012, foreign capital holdings by the mem industries

increased slightly more (+5.5%) than those for industry

as a whole (+3.1%). the mem industries accounted for 28.1%

of all industrial capital holdings abroad in 2012.

in a multi-year comparison, Swiss industry’s investments

abroad have increased sharply, and above all since 2004.

in 2012, capital holdings for the industry as a whole were

cHf 170 billion, or 106% higher than in 2004.

Between 2011 and 2012, there was a shift in capital holdings

from europe to asia. while capital holdings for the industry as

a whole in european countries declined by cHf 8.3 billion

(–5.6%), they increased in asia by cHf 10.6 billion (+23.2%).

overall, a capital increase of cHf 55.4 billion (+296%) occurred

in asia between 2004 and 2012, clearly emphasizing the

growing importance of the asian markets for the mem industries.

foreign direct investment in Switzerland was higher for the

mem industries in 2012 than in the previous year (+13.1%).

Since 2004, foreign capital holdings in Swiss industrial firms

have increased by 170%.

Major surge in direct investments in asia

Capital holdings of foreign companies in Switzerlandin cHf million

Source: SnB


42


Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 Rank 9 Rank 10 Rank 11 Rank 12

country d uSa cHn JPn i f Kor GB nl Sin B CH

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 Rank 9 Rank 10 Rank 11 Rank 12

Paper processing machinery d i cHn CH uSa JPn f tPe nl uK e Kor

Packaging machinery d i cHn uSa CH f JPn Swe e nl a tPn

machine tools JPn d tPe uSa CH cHn Kor e a f B GB

textile machinery d JPn cHn i CH f uSa Kor cZ ind B e

food processing machinery d i nl uSa cHn CH dK f JPn GB a e

Scales cHn d JPn uSa GB CH i nl Sin mex f Kor

Printing and paper technology d JPn uSa iSr i GB cHn CH f nl a tPe

turbines uSa d JPn i GB cHn f CH mex nl can Sin

Precision tools d JPn cHn Kor uSa i nl CH a Sin B Swe

compressors/vacuum tech. d uSa cHn i JPn B f CH GB nl mex Kor

Plastics/rubber machinery d JPn cHn i a uSa tPe f can CH Kor nl

key machinery-exporting countries 2012

Rankings in selected product areas 2012

DID yOu knOw THaT ...

Switzerland is ranked

no. 2in terms of machinery exports per capita?

Source: VDMA

Source: VDMA; mechanical engineering excluding office and information technology

43


0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

Machinery exports per capita 2012in 1,000 euros

when viewed in absolute terms, Switzerland occupied 12th

place in a 2012 ranking of the world's most important

machinery-exporting countries. in terms of per capita exports,

however, Switzerland ranks second behind Singapore. in

many product areas, Swiss companies are among the leading

global providers.

A combination of innovation, high product quality and first-

class service enables Swiss companies to compete success-

fully at a global level. in particular, small and medium-sized

companies tend to focus on a few niche markets while at

the same time providing a strong level of service. Stable

political and economic conditions, a first-rate infrastructure,

the availability of specialist labour, and the high quality

of tertiary education are all factors that explain why various

multinational companies continue to base their group

activities in Switzerland.

a liberal labour market and an innovation-friendly environment

represent further factors that should allow the companies in

the mem industries to continue to manufacture successfully in

Switzerland and export their products to the world markets.

Source: VDMA

Switzerland – a leading machinery exporter

Singapore

Switzerland

luxembourg

austria

denmark

Belgium

Germany

netherlands

Sweden

finland

italy

Slovenia

czech republic

Japan

norway

Slovakia

South Korea

estonia

taiwan

SwissmemPfingstweidstrasse 102, P.o. Box

8037 Zurich

tel. +41 44 384 41 11

fax +41 44 384 42 42

www.swissmem.ch

[email protected]

Swissmem Suisse romandeave. d’ouchy 47

1006 lausanne

tel. +41 21 613 35 85

fax +41 21 613 35 03

[email protected]

www.swissmem.ch

Swissmem Vocational TrainingBrühlbergstrasse 4

8400 winterthur

tel. +41 52 260 55 00

fax +41 52 260 55 09

[email protected]

www.swissmem-berufsbildung.ch

Swissmem Executive Training SchoolBrühlbergstrasse 4

8400 winterthur

tel. +41 52 260 54 54

fax +41 52 260 54 00

[email protected]

www.swissmem-kaderschule.ch

Documents

Industry Report - Swiss Machinery