Pro Workplace Switzerland
For a real industrial policy: Swissmechanic demands economic and political support for the domestic value creation of SME industry from the federal government and the National Bank: "Pro Werkplatz Schweiz!" is the motto.
The Swiss workplace is in danger. The trust of SMEs in appropriate treatment in line with their economic importance and their services to Switzerland's prosperity has cracked, and patience has been exhausted, according to a recently published communiqué from the industry association Swissmechanic. It is therefore calling for economic and political support for the domestic value creation of the SME industry from the Swiss government and the Swiss National Bank.
SMEs dying and "natural structural change
Recognized economic experts and institutes would confirm the unique economic gap between the large companies with value added abroad and the smaller, domestic companies, it continues. For Swissmechanic, it is clear that it is the exchange rate situation that puts domestic industrial SMEs at a national and international disadvantage. Until 2010, for example, mechanical engineering in Germany and Switzerland developed in parallel despite structural changes. When sales figures are indexed, adjusted for working days and converted from CHF to euros, it is clear that the slump in sales was triggered by the strength of the Swiss franc. Exports collapsed and the price competitiveness of Swiss quality products is no longer given internationally. There was a gap in the development of sales figures - triggered by the exchange rate.
Swiss franc shock - a blackout, not a "natural structural change
The fact is, in the eyes of Swissmechanic, that within one day the sales prices of domestic products were once again massively increased, but it was left to the SMEs to decide how to retain their customers abroad despite more favorable purchasing conditions or how to realize a cost reduction of 20% - and all this without capital for investments and without the real possibility of moving abroad. Nor is it a matter of a few production sectors. Apart from chemicals and pharmaceuticals, the entire industry is affected by export slumps. This means not only the MEM sector, but also accommodation, publishing, trade, textiles and many others. The weakness of the SME industry is therefore by no means a "normal structural adjustment", but a consequence of the strength of the Swiss franc, Swissmechanic continues.
Mitigating the strength of the Swiss franc through a targeted, vital industrial policy
With a view to other countries that are implementing resolute economic and political industrial promotion despite a stabilized currency situation, e.g. Germany, Norway, Singapore, Swissmechanic is therefore calling for an energetic industrial policy for Switzerland as a manufacturing location and for small and medium-sized commercial enterprises. Specifically:
- Creation of an SME fund: An investment opportunity is to be created for pension funds, companies and private individuals so that risk capital for investments is granted by the commercial banks. This money from the National Bank, the Confederation and investors is to flow into domestic production at the Swiss location. For example, in the upgrading of machinery, in Industry 4.0, plant purchasing, robotics, digitization projects, in succession financing, further education and higher vocational training. Loan defaults are to be covered by guarantees from the SNB. The investments made possible by the SME fund, which contribute to maintaining competitiveness, require time to implement and develop their effects. Therefore, a further stabilization policy of the National Bank during the next 3 years is important so that SMEs consistently use the levers of automation, Industry 4.0, and progress is not pulverized by a falling euro exchange rate. At the same time, a placement fee for commercial banks is demanded. The processing, examination and mediation of innovation loans to industrial SMEs must be promoted accordingly. So it's not about gifts, it's about providing urgently needed venture capital to promote Switzerland as a place to work and its jobs, which contributes to a win-win situation for all parties involved.
- SME export promotion: This involves export promotion and financial assistance to support disadvantaged SME industry in activities abroad. For example, in sales, marketing, trade fairs, lobbying, sales and purchasing associations, export guarantees and export risk insurance.
According to Swissmechanic, it is a matter of preserving the image-forming "Swiss quality products" - they are just as worthy of protection as other national achievements and are a guarantee for competence-based value creation. Now courage is required to openly face the crisis in the secondary sector, not to sugarcoat anything and to work out pragmatic solutions that benefit the entire Swiss workplace.
