Modern Watchmaking Today in Switzerland Reshoring and Automating Manufacturing

Tony Arquisch CPA Group SA / Business Development Manager

Industrial Park

Commercial Companies

High Tech-Incubator

CPA Group Since 1999, developing and providing industrial components and capital equipment for the Swiss watchmaking industry

Industrial Components Capital Equipment

Switzerland

Switzerland

RoW

RoW

Sources : FH et Vontobel Luxury Goods Shop 2014

Swiss Watch Industry Key Figures

Swiss Exports in 2013 / 28,1 million watches (China and HK, respectively 634,4 million and 331,5 million)

Average price of a watch: $ 791 for a

Swiss watch $ 3 for a Chinese watch 95% of the watches which are sold for

over $1000 in the world are produced in Switzerland

Number of watches

Share in value

2013 Market Share (in Value) of the Key Watch Manufacturers

Swiss Watch Industry Key Figures

Source : Vontobel Luxury Goods Shop 2014

Swiss Watch Industry Key Figures

Manufacturing of Components for Swiss Watches (Offshoring) Countries who supplied components for Swiss Watches 2012 Switzerland imported (value in brackets) million Swiss Francs

In 2012, components imports exceeded 2.1 billion Swiss Francs (1.5 billion from Asia)

Bands Cases Dials

Movements Other parts

Source: Federal Custom Administration, Credit Suisse

General Trends Reshoring

The Swiss watch industry is reshoring their manufacturing activities for several reasons:

The quality «Swiss Made» label

Unknown labor costs increase in Asia

Intellectual Property

General Trends Reshoring

To be able to use the «Swiss Made» label 60% of manufacturing costs have to be done in Switzerland. The large brands have started to move (manual) lines from Asia to Switzerland.

Lines can not be 1 to 1 transferred (costs, labor force)

Manual processes need to be performed by Robots and other

Automated tools

High-end, automated systems and breakthrough technology has been implemented and is constantly being developed

Production Solutions …Automating to Date Manual Processes

Bulk / Sorting / Palletizing in Tubing Ruby Stones

Production Solutions …Automating to Date Manual Processes

Pick and Place of Appliqué Indicators on a Watch Face

Production Solutions …Automating to Date Manual Processes

Pick and Place Watch Components on Finishing Fixture

Production Solutions …Automating to Date Manual Processes

Pick and Place of Ruby Stones (0.9 x 0.2 x 0.2mm)

Production Solutions …Automating to Date Manual Processes

Automated aesthetic inspection of the components

Production Solutions …Implementing New Technologies

Laser Seam Welding of Watch Bracelet

Production Solutions …Implementing New Technologies

Laser Engraving the Brand Name in Watch Housing

Conclusion

Manual Process are being and will continue to be Automated Todays watchmaker can concentrate on workmanship and

on processes that should not be automated due to costs. Modern technology, robotic equipment, self learning

inspection software and automation are here to assist the craftsman watch maker.

Tony Arquisch Business Development Manager CPA GROUP SA Villaz-St-Pierre, Fribourg Switzerland Telephone: +41 26 653 71 84 Email: tony.arquisch@cpagroup.ch

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