Swiss industry remains surprisingly committed to Switzerland as a business location

The key results at a glance:

• Switzerland as a business location is gaining ground: All 15 location factors examined were rated better than in the previous year. “Made in Switzerland” has reached a new all-time high.
• Profitability is rising, whilst margins are polarising: The leading group, with margins of over 20 per cent, is growing significantly; at the same time, the proportion of companies with low margins is also increasing.
• The pace of innovation is slowing: The share of turnover accounted for by new products and services – a key indicator of innovation – fell from 22 per cent in 2023 to 17 per cent in 2025.
• Geopolitical pressure is mounting: 42 per cent of companies report that geopolitical developments are having a significant impact on their production, ten percentage points more than in the previous year.
• US tariffs are taking their toll: For 27 per cent of companies, US tariffs have had an impact through falling sales figures in the US, and for 34 per cent through disruptions in supply chains. At the same time, China remains a central part of Swiss companies’ production networks – despite geopolitical risks.
• Large companies have a more international footprint: For them, neighbouring countries are now more important than Switzerland. Both as sales and procurement markets. SMEs remain more focused on the domestic market. 

Swiss industry is recovering cautiously 

Swiss industry is recovering cautiously, despite the strong Swiss franc, subdued demand and new US tariffs. 35 per cent of companies expanded their production capacities in Switzerland, compared with 20 per cent who reduced them. In operational terms, Swiss industrial companies showed improvements across the board, most notably in digitisation. The picture is polarised when it comes to margins: the top group, with margins of over 20 per cent, has more than doubled in size, whilst at the same time more companies are reporting low margins of 0–4 per cent.

Innovation momentum is waning

As the study shows, Swiss industry remains innovative, but early indications suggest that the pace of innovation is slowing. The share of turnover accounted for by new products and services fell from around 22 per cent in 2023 to 19 per cent in 2024 and then to 17 per cent in 2025. At the same time, companies report progress in digitisation, operational efficiency and flexibility. However, these improvements have so far had little impact on profitability.

When it comes to operational planning technologies, enterprise resource planning (ERP) systems and cloud computing are the most widely used. Generative AI is reaching moderate levels of maturity in many companies, whilst agentic AI is still in its infancy. Large companies are more likely to see digitisation making a concrete contribution to competitiveness: 72 per cent attribute at least a moderate contribution to it, compared with good news for SMEs.

Switzerland as a business location is gaining in importance

Despite cost pressures, companies rate Switzerland as a production location more positively than in the previous year. All 15 location factors examined improved, particularly markedly among large enterprises. “Made in Switzerland” reached a new high of 4.1 out of 5 points. This is followed by access to highly qualified skilled workers and proximity to customers. Labour costs and exchange rate risks remain the greatest structural challenges.

A certain degree of loyalty to the location is also evident in terms of production capacity: 35 per cent of companies expanded their capacity in Switzerland in 2025, whilst 20 per cent reduced it. Companies expect a moderate expansion over the next three years. 

Geopolitics shapes production

Geopolitical pressure on Swiss industry is mounting. 42 per cent of companies report that geopolitical developments are having a significant impact on their production, ten percentage points more than in the previous year. Companies are responding primarily by passing on costs, exercising tighter cost control and implementing more systematic risk management within their supply chains. By contrast, long-term structural measures, such as relocating production capacity out of Switzerland, are rarely considered.

US tariffs are also weighing on expectations: 27 per cent of companies report a decline in sales in the US. Furthermore, 34 per cent stated that US tariffs are having a negative impact on their global supply chain.

Large enterprises have a more international focus

Large enterprises and SMEs differ significantly in their international orientation. Around 15 per cent of Swiss SMEs also manufacture abroad, compared with 70 per cent of large enterprises. For large enterprises, neighbouring countries are now more important than Switzerland, both as sales and procurement markets. SMEs, by contrast, remain more focused on the Swiss domestic market.

Another finding of the study: China remains an important production location. With 80 production sites, the country ranks third outside Europe, behind the USA with 99 and ahead of India with 52 sites. Companies predominantly rate their dependence on stable economic and trade relations with China as moderate to high. Chinese sites thus remain a central component of many Swiss companies’ production networks. However, the associated risks are considered to be comparatively limited.

Conclusion: The Swiss Manufacturing Survey 2026 paints a picture of a resilient Swiss industry. Companies are committed to Switzerland as a business location and rate its strengths more positively than in the previous year. At the same time, geopolitical uncertainties, cost pressures and the slowing pace of innovation are increasing the need for action. It will be crucial to continue translating the strength of the business location into innovative capacity and competitiveness in the future.

The “Swiss Manufacturing Survey” led by Prof. Dr Thomas Friedli, Simon Gmeiner and Simon Gese of the Institute of Production and Supply Chain Management (PSCM-HSG) was conducted for the tenth time at the University of St Gallen in 2026. The survey, which ran from 8 April to 30 June 2026, involved 404 respondents from 388 Swiss companies. 78 per cent of the participating companies that provided details of their size are SMEs with up to 249 employees.