BERN — 26 August 2025. Switzerland’s technology industry entered the second half of the year on weaker footing after a marked fall in orders and persistent export headwinds, the sector association Swissmem said on Tuesday.
Order intake declined by 13.4 per cent in the second quarter compared with the first, a drop recorded before new United States import tariffs on Swiss goods took effect. For the first half of 2025, sales fell 2.5 per cent year on year, order intake slipped 2.3 per cent, and goods exports decreased by 0.9 per cent. Swissmem warned that the order decline ahead of the tariff decision points to a further deterioration in the coming months.
The association said the weakness has extended a run of nine consecutive quarters in which sales trailed the prior-year period. Capacity utilisation in the second quarter stood at 80.9 per cent, below the long-term average of 86.2 per cent. Employment in the sector totalled 324,600, down by 3,100 on the previous quarter. Swissmem represents the mechanical, electrical and metalworking industries and related technology segments, which together form a core export pillar of the Swiss economy.
Regional export data show a mixed picture. Shipments to Asia in the first half declined by 7 per cent year on year, with exports to China down 16.8 per cent. Exports to the European Union were broadly unchanged, down 0.1 per cent, while exports to the United States rose by 1 per cent overall. The profile shifted within the semester: U.S.-bound exports increased by 5.3 per cent in the first quarter but fell by 3.1 per cent in the second after tariff threats were issued in April. Swissmem described the second quarter as particularly weak for new orders.
Swissmem linked the slowdown to political uncertainty that has weighed on demand for investment goods. Director Stefan Brupbacher said the U.S. tariff rate, now 39 per cent for Switzerland compared with 15 per cent for the European Union, risks deepening the downturn unless conditions improve. Because the fall in orders preceded the tariff decision, the association said the full impact of the levy has yet to be reflected in company pipelines, and visibility remains limited.
Currency effects have added to the pressure on margins and pricing. In a survey conducted after 7 August, Swissmem members identified the strong franc and weaker global demand as the largest burdens on operations, followed by regulatory costs and the loss of U.S. business. Seventy per cent of respondents rated the combined impact of fifteen identified burden factors as significant to very strong, indicating broad-based strain across the industry.
Firms reported a mix of contingency measures and growth efforts. According to the survey, 80 per cent aim to enter new markets and 60 per cent plan to develop new business lines. At the same time, 37 per cent are preparing job cuts, 31 per cent are considering relocating parts of their operations to the EU, and 28 per cent anticipate short-time work (Kurzarbeit). Swissmem President Martin Hirzel said dismissals are unavoidable, with the scale depending on how quickly the tariff rate can be reduced and domestic cost pressures eased.
In response, Swissmem has launched a petition urging the Federal Council and Parliament to improve framework conditions for exporters. The association called for a reduction in bureaucracy, a halt to new regulation, and avoidance of additional levies, including higher payroll-related charges. It urged lawmakers in the autumn session to extend the maximum duration of short-time work compensation to 24 months to limit redundancies. Swissmem also asked for completion of the revision of the War Materiel Act, saying this would support the domestic defence industry and, by extension, national security.
Relations with the EU feature prominently in the association’s agenda. Swissmem said stable ties with the bloc—Switzerland’s largest trading partner—are gaining in importance and called for an accelerated process towards a third package of bilateral agreements. It also appealed to political parties, NGOs and business groups to refrain from launching referendums against new or updated free-trade agreements, arguing that predictable market access underpins investment decisions. The association said companies need time and financial flexibility to adjust: longer short-time support would provide time, while lower location-related costs would free up funds for retooling, market development and workforce measures.
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