Foreign Trade Forum 2021: The export economy in the new normality

The "new normal" predicted for the end of the pandemic is already a reality for most export-oriented companies in Switzerland. This was made clear by a wide range of speakers at this year's Foreign Trade and Investment Forum. In her closing remarks, Ruth Metzler, Chairman of the Board of Directors of Switzerland Global Enterprise (S-GE), said that the crisis has shown which international business models work and which do not. One goal of this year's Foreign Trade and Investment Forum was to provide companies with inspiration and practical tools to get back on track or continue to get off the ground in exports.

Maintain bilateral path with the EU

It is not only the Corona crisis that influences foreign trade, but also shifts in economic policy: What impact, for example, do the differences between the USA and China have on the Swiss export industry? What framework conditions are needed to ensure that foreign trade with the EU continues to work? And how will trade relations between Switzerland and the United Kingdom develop after the UK leaves the EU? These questions, which companies generally have little influence on answering, were the focus of various panel discussions. Swissmem President Martin Hirzel, for example, emphatically calls for the bilateral path with the EU to be maintained. After all, despite emerging markets in Asia or Africa, it is still the European countries, above all Germany, to which most Swiss goods are exported. "For the MEM industries, the European market still offers the highest growth rates over the next ten years, says Martin Hirzel. And what is often forgotten: "Switzerland is the fourth most important trading partner of the EU," as SRF correspondent Sebastian Ramspeck noted.

Next crises will follow

Simone Wyss Fedele, CEO of S-GE, summarized the most important findings for export practice at the Foreign Trade Forum 2021 as follows: Concentrate on niches and fully exploit the opportunities of digitalization there, diversify, adapt value chains and be able to deal with uncertainty. Because, as Ruth Metzler also emphasized in her closing speech, regulations will increase and more unexpected crises will follow. Aude Pugin, CEO of APCO Technologies SA and President of the Vaud Chamber of Commerce and Industry, regretted in her keynote speech that too little attention is still paid to the fact that crises should also be used as opportunities. Resilience is the order of the day, she noted. "We have to learn, at surf the wave instead of waiting for the next one to hit," she said, referring to the fact that we are currently affected by both a health crisis and an economic crisis.

Do not let supply chains break down

For SMEs in particular, interrupted supply chains prove to be a problem time and again. Howag Kabel AG, for example, was also affected by this. Its CEO Eugen Peterhans described how his company dealt with the challenge of having to increase the delivery capability for a key customer within a short time. Tight management with the setting of clear priorities proved to be decisive in such situations. In order to remain able to deliver in the long term, it is essential to rely on several sources, including suppliers, and also to consider warehousing, which does not seem very attractive in the low-interest environment. That this involves additional costs is undisputed. But Tomasz Gonsior of OptiBuy GmbH says in this regard, "It may be more expensive to do nothing." The risk must therefore also be borne by customers and suppliers.

Ignazio Cassis at the Foreign Trade and Investment Forum 2021: Federal Council continues to advocate good framework conditions

The value of personal relationships should not be underestimated despite digitization, which has now shifted many contacts to the virtual world. Physical contacts must therefore be used even more effectively, said Andreas Gerber of Credit Suisse, which together with S-GE regularly examines the export prospects of Swiss companies. Despite the adverse circumstances, it is important to focus on normality, "also financially," as Gerber emphasized with a view to the state aid funds that will eventually run out. "Companies must once again focus on money they have earned themselves." But politics is also called upon. Here, Foreign Minister Ignazio Cassis assured the companies that the Federal Council will continue to work for good economic conditions. "Diplomacy is measured by how it stands up for business." The population sometimes seems to forget how important the export industry is for our country, said Cassis - probably also intended as a small dig at the discussion surrounding the framework agreement with the EU.

More information: Switzerland Global Enterprise