Swiss Manufacturing Survey 2024: Industry's faith in Switzerland as a production location remains unbroken

The survey of 339 companies from a range of sectors in Switzerland was conducted by the Institute of Technology Management (ITEM-HSG) at the University of St.Gallen.

Rising costs and global risks are putting companies under pressure

The study shows how companies are preparing for the coming years and what strategies they are pursuing to ensure their competitiveness. According to the survey, many Swiss companies are facing enormous challenges: almost half (47%) of the companies surveyed report a year-on-year deterioration in their production cost performance. This development is putting pressure on profit margins and presenting many companies with economic challenges.

Financial pressures are not the only concern: the globalisation of supply chains is also increasingly seen as a risk. Geopolitical tensions and the aftermath of the COVID-19 pandemic have highlighted the vulnerability of global supply chains. 73% of companies expect geopolitical uncertainties to continue to have a significant impact on their business over the next five years. These risks are forcing companies to rethink and adapt their supply chain strategies.

Increased local procurement as a strategy against uncertain supply chains

In response to the risks of global supply chains, 58% of companies are increasing their collaboration with suppliers. In addition, half of the procurement volume of materials and products is already sourced from Swiss suppliers. This strategy serves to reduce dependence on global markets and increase resilience while promoting environmental sustainability.

Innovation as a driver of growth

The innovative strength of Swiss industry remains unbroken. In 2023, companies generated 22% of their sales from new products and services. This ability to continuously innovate is an important advantage that enables the Swiss industry to hold its own in an increasingly volatile and uncertain global market and to ensure its competitiveness.

Optimism despite challenges

The results of this year's Swiss Manufacturing Survey show that Swiss companies are optimistic about the future despite all the challenges. Both in Switzerland and globally, manufacturing capacities developed positively in 2023. For example, 42% of companies expanded their production capacities in Switzerland last year. And companies expect further growth over the next three years.

339 companies surveyed

The Swiss Manufacturing Survey is a survey of Switzerland's manufacturing industry and has been conducted annually by ITEM-HSG since 2017. This year, 339 companies from 21 sectors took part, including 258 SMEs and 81 large companies with more than 249 employees.

The full report of the Swiss Manufacturing Survey 2024 provides further insights into the challenges and trends in Swiss industry and is available to download here. 

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