The Corona key figures are developing in a positive direction. With one exception: The interruptions in the supply chains are again increasingly causing problems for SME-MEM companies. This is shown by the survey conducted among Swissmechanic member companies in April 2021.

Fewer liquidity problems and less short-time work ...

According to the survey, there has been a significant improvement in the Corona indicators in April 2021. Compared with January, the tight financial situation of the SME-MEM companies surveyed has eased; the companies are facing fewer liquidity problems and a lower risk of bankruptcy. The order situation has also improved, and less short-time work had to be registered.

... but more interruptions in the supply chains

One of the bigger challenges facing SME-MEM at the moment is supply chain interruptions, which have risen sharply again. Whereas in January 2021 the figure was 23%, in April 2021 43% of companies are struggling with interruptions in their supply chains. This is similar in magnitude to a year ago, when 42% of the companies surveyed cited the problem of interrupted supply chains. But the causes have changed. A year ago, closed borders and lockdown measures in many places were responsible for supply chain disruptions. Today, global shifts in consumption patterns and economic catch-up effects are causing capacity bottlenecks in international freight trade, raw materials and microchips. The problem was temporarily exacerbated by the Suez disaster, which has since been resolved.

Outlook

Despite interruptions in supply chains, Swissmechanic Director Jürg Marti sees a silver lining on the horizon: "We have clear signs that the economic situation is picking up and that many companies have bottomed out."

Source: Swissmechanic

The question of how the knowledge and experience of the "aging workforce" can be used profitably in companies was explored by Dr. Pamela Bethke, Matthias Mölleney and Daniela Strohmeier in a recent study at the Center for Human Resources & Leadership at the HWZ. Using the example of the cantonal banks in German-speaking Switzerland, the study examined age management from the perspective of employees. Two thirds are satisfied with it. Just under 80% of those surveyed would like to see a retirement age of 60-65.

Preserve Aging Workforce

It is important for the aging workforce to remain in the workforce longer in order to transfer expertise to future generations as part of knowledge management. Cross-generational expertise and experience in heterogeneous teams are increasingly system-relevant factors for companies in globalized competition. The "aging workforce" - employees over the age of 50 - is thus the focus of attention, whose expertise and experience must be safeguarded even after individual retirement. The looming loss of knowledge due to demographic change and the associated wave of retirements pose major challenges for companies in Western industrialized nations. The demographic asymmetry in conjunction with the decreasing intergenerational knowledge transfer and the declining number of employed persons additionally intensifies the personnel competition, also and especially at the Swiss cantonal banks.

Knowledge and experience assurance 50+

In their HWZ Working Paper on the potentials of the "Aging Workforce", the authors state that their needs are driven less by financial aspects and more by flexibility and appreciation. "The results of the study clearly show the economic and business benefits that can be gained by actively integrating the expertise and practical professional and life experience of employees over the age of 50, including for Swiss cantonal banks," emphasizes Matthias Mölleney, Head of the Center for Human Resources Management & Leadership at the HWZ Hochschule für Wirtschaft Zürich. Retirements too often destroy valuable practical experience, while the timely and intergenerational transfer of knowledge creates competitive advantages.

Action-oriented recommendations

The global pressure to innovate is a key challenge for companies with a workforce that tends to be older. Generations that have been socialized differently by technological change often bring values and expectations to the work process that could not be more different. Intergenerationally relevant expertise must be secured and sustainably dovetailed. Swiss companies must integrate the "aging workforce" even more strongly into corresponding personnel processes. The study by Dr. Pamela Bethke, Matthias Mölleney and Daniela Strohmeier provides action-oriented recommendations for this.

Source and further information: www.fh-hwz.ch

As No. 1, Swisscom wants to shape the future, which is taking place in an increasingly digitized and connected world. With the acquisition of JLS Digital AG, the Business Customers (B2B) division is further expanding its range of solutions in the area of customer experience. JLS was founded in 2001 and is now the market-leading digital signage, mobile and web agency. JLS' core competencies lie in the design, development and operation of cross-channel digital customer experiences and interactive advertising and information systems. The acquisition adds a team of over 90 digital experts to Swisscom B2B, takes over a customer portfolio of 80 companies in banking, retail and insurance, and gains access to decision-makers in marketing, sales and service.

Expansion of competence in digital signage

The competencies of JLS Digital and Swisscom subsidiary Open Web Technology, which is a recognized market leader in digital transformation consulting and software engineering, and JLS complement each other from a geographic, industry and technical perspective. As a result of the merger, Swisscom B2B now has a pool of more than 300 software engineers, user experience and user interaction experts in all regions of Switzerland.

"Innovate in the digital world"

Commenting on the transaction, Urs Lehner, Head of Swisscom Business Customers, says: "We are now better positioned than ever to inspire and enable medium and large enterprises to innovate in the digital world and operate on an equal footing with market leaders. By strengthening our digital customer experience offering, we are making a clear commitment to Swisscom's promise to empower and accompany customers with an integrative, smart solutions portfolio." And Xavier Paternot, Managing Partner Renaissance, comments, "Renaissance Anlagestiftung sees the acquisition by Swisscom as an excellent opportunity for JLS Digital AG to accelerate its development and market penetration. Also crucial for Renaissance was the fact that the management team of JLS Digital AG also recognizes this opportunity and therefore fully supports the acquisition at hand."

Independent Swisscom Company

JLS Digital AG will become an independent Swisscom Company with its own management and board of directors. The management of JLS will remain unchanged and retain its responsibilities. The Board of Directors will be re-staffed with Swisscom representatives in the coming weeks. In organizational terms, the new Swisscom Company will be attached to the recently created Platforms & Application (PAP) division at Swisscom Business Customers. Patrick Minder, the former CEO of JLS, has been heading Platforms & Application, the business customer unit serving customers with software solutions, since April 2021.

Source and further information: Swisscom

The requirements for current IT infrastructures are clearly defined: they must be fast, agile, scalable and highly available. Legacy systems, such as relational database management systems (RDBMS), are overwhelmed by this due to their structures. They are too rigid and limited to provide the required data and information for modern, distributed applications in hybrid IT and multi-cloud scenarios. The migration to a flexible database platform that masters the advantages of RDBMS, NoSQL and cloud with edge computing therefore seems logical and compelling. However, behind this are sub-aspects that require great attention in order to make such a timely change as cleanly and with as little risk as possible. According to Couchbase, a provider of a modern data management platform, there are five pitfalls that lurk during a database migration:

1. The migration of data. It is fatal to adopt the data model of the old relational database management system 1:1 when switching to a new database (such as NoSQL). To properly exploit the advantages of modern databases and support new use cases and SLAs (Service Level Agreements), a new data model is required - just as a sports car needs adequate tires to develop its full potential.
2. The migration of the app framework. The same applies to the application logic. The programming framework must be adapted to the capabilities of the new database. This concerns, for example, the adaptation of the programming libraries (SDKs) to the new database. If this is not sufficient because the framework in the legacy system is no longer up to date (for example, Cobol), the entire framework must be replaced.
3. The migration of the apps. A common mistake is the big-bang approach. Just as it makes little sense to immediately want to chase times on the Nürburgring with a freshly acquired sports car, the migration risk should also be minimized through a successive approach. A step-by-step migration with a bi-directional Data Connector between the old and new worlds takes away the time pressure and ensures that regular operations can continue undisturbed from the user's point of view.
4. The importance of migration partners. Pure in-house solutions are often regarded as a supposed proof of qualification, but are usually illusory. Involving external consulting with valuable knowledge of best practices and typical sources of errors can protect against missteps, shorten the migration process, and ultimately help keep costs under control. This experience can be contributed by IT system partners or the database manufacturer.
5. The organizational changes. The technical migration of the database system alone is usually not enough to achieve the intended support of the company's goals. This also requires internal operational changes, such as a more DevOps-driven organization. This also changes the classic role of database administrators, who become more involved in app development with microservices and CI/CD automation.

"Database migration is part of a comprehensive modernization process of IT infrastructures," explains Steffen Schneider, Head of Solutions Engineering Central Europe at Couchbase. "Companies should see this as an opportunity to reposition themselves technically and organizationally, but also in terms of mindset, and thus secure their competitiveness."

Source and further information: Couchbase

With today's publication of the spring issue of the follow-up magazine 2021, the joint initiative of ORGANISATOR and the Initiative Nachfolgebus.ch special publication is now in its second round. The successor magazine was launched for the first time last year. The trade publication appears each spring as a digital edition and in the fall as a printed edition.

Successor magazine 2021 with diverse topics

This year, the focus of a comprehensive information and training offer on business succession tailored to the needs of SMEs is on preservation sales. In this way, the Nachfolgebus.ch initiative accompanies and supports entrepreneurs in particular who are pressed for time with their succession planning. The Nachfolgemagazin 2021 offers for it with detailed check lists both enterprise salesmen and - buyers a systematic overview to the seven-stage follow-up process. Well-founded expert articles and practical examples provide a wide range of tips. In addition, background reports on the importance of diversity in the context of succession and on specific entrepreneurial thinking methods provide further impetus for entrepreneurship. The current issue is available online at the price of CHF 25 at: www.companymarket.ch/nachfolgeshop

Preservation sale - when you need it fast

Currently, more than 87,000 companies are facing an unregulated succession. A company handover does not always go smoothly, and sometimes time is simply pressing. Whether due to a crisis situation or because the succession within the family fails at the last moment - the reasons why a succession arrangement suddenly comes under time pressure are manifold and usually unexpected. For such situations and all other succession scenarios, the initiative Nachfolgebus offers a wide range of expertise, some of which is free of charge. In addition to the aforementioned succession magazine 2021:

• The successor bus digital for digital free 1:1 expert* discussions
• The Succession practice workshops online as a permanently available continuing education platform. With videos, podcasts and dossiers available for download.

Dedicated to succession - the Phoenix Award

Consistent commitment to business succession also means preserving and strengthening long-term entrepreneurship in Switzerland, which is largely made up of a large number of SMEs that are several decades to centuries old. That is why the Nachfolgebus.ch 2020 initiative has for the first time launched the Phoenix Award for long-term Swiss entrepreneurship is awarded. Every year, Swiss companies that have successfully mastered business succession for at least a century are honored with this award. They usually had to overcome some crises and rise like the "Phoenix from the ashes".

Potential award winners are, on the one hand, all Swiss SMEs that have been entered in the commercial register for 100 years in the respective year. On the other hand, they are the SMEs founded 100 years ago in the respective year. A jury of experts with representatives from entrepreneurship, science and the media will select the winners in the categories Innovation/Disruption/Erneurship, Impact and Performance as a Team and Social/Economic Contribution. The members of the jury in 2021 are Dr. Corinne Mühlebach, lecturer for Strategic Marketing, Strategic Management and Entrepreneurship at the FHNW Hochschule für Wirtschaft and co-owner and managing director of Mühlebach AG, Barbara Schär, entrepreneur and succession expert, owner and managing director of La Progressia GmbH as well as René Spielmann, owner and managing director of H. Rüetschi AG, winner company of the Phoenix Award 2020. Members of the three-member jury advisory board are Corin Ballhaus, positioning expert for SMEs, owner of Ballhaus Profiling, Giacomo Garaventa, Succession expert, owner and managing director of nachfolger.ch as well as Thomas Berner, Editor-in-Chief ORGANISATOR.

Even one year after its outbreak, the Corona crisis is omnipresent for Swiss SMEs. The study by Prof. Dr. Sebastian Gurtner of the Institute Innovation & Strategic Entrepreneurship of BFH Wirtschaft shows that 92 percent of the 254 companies surveyed are affected by the crisis; 5 percent even to an extent that threatens their existence. In the first survey in March and April 2020, the level of concern was estimated to be slightly higher at 99 percent (in some form) and 12 percent (threatening the existence of the company).

Decline in sales and staff reductions as consequences of the crisis

Just under half of the SMEs surveyed said they had suffered a drop in sales in 2020. 9 percent of the companies even lost more than 50 percent of their sales last year. As a result, 18 percent of the companies had to lay off employees. The reserves saved in previous years also shrank in the "Corona year" 2020: on average, the companies affected had to use up 40 percent of their operating reserves. The personal resources of the entrepreneurs were also tapped at around one in five companies. Not all companies had to accept losses, however: As many as 33 percent of those surveyed were even able to increase their sales in 2020.

Sustainable innovations play a subordinate role in the crisis

As a result of the Corona crisis, changes in the business model were necessary at one in five SMEs. In many cases, this required innovations that were primarily related to the companies' main business activity: 18 percent of investments in 2020 went to technology-oriented innovations. Process optimization accounted for 13 percent of investment funds. Sustainable innovations, on the other hand, were less heavily promoted: Only 5 percent of the available innovation budget flowed into development projects with a focus on sustainability.

If companies have implemented innovations in 2020, these have primarily addressed changing customer needs. Due to the Corona crisis, for example, new digital sales channels had to be developed. The second most important reason was to maintain or improve their own competitive position.

What particularly inhibits sustainable innovations at present

Thus, although the Corona crisis triggered innovation efforts among the companies surveyed, hardly any projects were implemented that promoted social or environmental sustainability. The results of the studies provide three possible explanations:

• Lack of resources: During the Corona crisis, SMEs lacked both money and time to devote more attention to sustainable innovation. The main focus was on continuing operational business activities.
• Short-term planning horizon: 2020 was characterized by uncertainty: long-term planning was hardly possible; general conditions (e.g., restrictions on the number of people, store closures) often changed at short notice, and customer needs also changed. In this situation, it was difficult for the entrepreneurs to plan and implement innovations in the longer term.
• Low relevance of sustainable innovations: Awareness of the contribution that one's own company can make to ensure the sustainable development of society is still too low among many companies. In a pandemic, relevance is also often assessed in the short term and with an internal view. A large proportion of the companies surveyed were busy in 2020 with maintaining operations under the new conditions. Sustainable innovations that do not have a direct impact on business operations were thus pushed into the background.

The results come from the second survey of a progress study of the Institute Innovation & Strategic Entrepreneurship of BFH Wirtschaft. The survey took place in March and April 2021.

Source: Bern University of Applied Sciences

You are probably familiar with the "Theory of Constraints", which is all about uncovering and eliminating the biggest bottlenecks. The effects of this can be manifold, but always lead to more success in the end. This theory also works in our personal behaviors as leaders.

Find the real bottlenecks

The reason for this is the unproductive habit that we often improve those things that have little significant impact on results. Conversely, we care too little about what is really the bottleneck to our success.

Why is that? Here are two reasons:

• Lack of awareness. Many people are not even aware of their biggest bottlenecks in life and work. A coach helps with the clarification.
• Eliminating our biggest bottlenecks is often unpleasant. Namely, it is our dear habits that stand in our way. Here, too, a coach helps.

What stands in the way of your success

To make it a little more concrete, here are three typical bottlenecks for you as a leader that stand in the way of your success:

1. Letting go of fear. After all, it's good if we reinforce what makes us successful. The only thing is: over time, the parameters change so that the very thing that made us successful now gets in the way. It could be managers in certain positions, habitual meetings, cumbersome processes, or too much hedging. I see again and again that the targeted letting go of old things releases real energy leaps in the team.
2. Poor communication. Yes, it's simply important that you can clearly convey messages in an emotionally convincing way, regardless of the platform. If you're a leader these days who struggles to express yourself in front of a video camera, for example, you need to practice it. Otherwise, your communication will be a bottleneck.
3. Too little learning. It's an ongoing issue, but most managers do far too little for their own personal development. One rule of thumb is to read a book or do something similar for your development at least 30 minutes a day. If you keep that up, you'll manage the equivalent of about 20 books per year. That would certainly take you a lot further and help eliminate your bottlenecks.

As mentioned earlier, the first step to eliminating personal bottlenecks is to realize that you have them in the first place and that they are relevant to your success. This is where someone who holds up a mirror to you can help.

To the author:
Volkmar Völzke is a success maximizer. Book author. Consultant. Coach. Speaker. www.volkmarvoelzke.ch

Swiss companies have come through the economic crisis better than their competitors in Europe. They were already in a comparatively strong competitive position in 2019 and managed to increase their return on equity and operating profit during the pandemic compared to their European peers. This is the conclusion of the study "Switzerland's Top500 - Summit in Sight" published by Accenture Switzerland. If a company enters a crisis stronger, it also emerges from it more successful. The report shows the characteristics for precisely this entrepreneurial success. More than 200 Swiss and European companies from a total of ten industries were examined.

Even before the pandemic, signs of an impending economic crisis

The results already show a slowdown in sales development across all industries for the year before the pandemic. This compares to an average 3.5 percent increase in sales over the previous five years and no growth in 2019. However, the profit margins of different industries can be looked at in a more nuanced way. In chemicals, pharmaceuticals and healthcare, pre-pandemic profit margins were well above the national average of 9.5 percent. In terms of sales growth, they were also above the average of 2.5 percent growth over the past five years. Looking at Switzerland, it can be said that domestic companies entered the crisis with higher profitability than their competitors in Europe. In terms of market valuation, Swiss companies also performed better than their European counterparts in virtually all sectors, in seven out of ten industries. Only the operating margin was slightly lower. This is shown by an international comparison of the corresponding key figures.

Economic crisis, what now?

The increase in return on equity and operating margin shows how well Swiss companies have responded to the pandemic. This is particularly evident in the case of producers of consumer goods, industrial equipment manufacturers or even chemical companies, which further improved their relative performance figures compared with European competitors during the pandemic-related economic crisis. The opposite is true in other sectors. The Swiss retail trade has lost further ground because numerous retailers have been slow to follow the trend toward increased digitization and e-commerce. Even if the need to catch up is recognized and initiatives for digital transformation are being driven forward, the economic environment remains challenging regardless of the sector. The question therefore arises: Do criteria exist that can inspire success even in the face of the crisis?

Companies that invested in digitization before the COVID 19 crisis are emerging from it stronger and will further extend their lead compared with companies that managed their digital infrastructure exclusively before the crisis. One reason for this is that the COVID 19 crisis accelerated digitization. Consequently, this means that in addition to functioning business activities, these companies are promoting reforms in new business activities and scaling their digital business models there. The general focus on the customer experience in combination with a modern digital architecture will continue to be the basis for entrepreneurial success after the COVID 19 crisis.

Anchoring success characteristics - but how?

The focus on innovation as well as operational and strategic agility is a firm necessity for mastering the future. Only through "constant reinvention at speed", the foot-on-the-gas-pedal, constantly reinventing oneself, one achieves the desired state. In this way, one recognizes and avoids unnecessary costs and can redirect these freed-up financial resources into redesign. This way of thinking leads to a new culture of innovation in the company. By improving the digital infrastructure and the targeted use of modern technologies, skills, leadership and company culture as a whole can be realigned so that a new, coherent digital business model emerges within the organization. The keyword here: Creation through scaling. Because customer experience (CX) refers to the transaction with customers, but a product offering alone does not define a great experience, CX has evolved into BX: the business of experience. This holistic, customer-centric approach not only generates sustainable growth, but also enables innovation.

The New Digital Core is the heart

The resulting reimagined and end-to-end digitized company is based on a new competitive advantage. The "New Digital Core" is a digital image of a company. All applications, services and data are brought together in the cloud. This allows all company processes to be controlled centrally and in real time. This also includes processes involving partners and customers. The idea is to anchor collaboration and customer experience deeply in the structures and self-image of a company. The data required for this is available simultaneously, which shortens decision-making processes, enables performance assessment and makes complete transparency the standard. Cost-intensive and innovation-inhibiting barriers between processes, employees, suppliers and customers are thus eliminated. In combination with automation, robotics, AI or the Internet of Things (IoT), business processes, product innovation and supply chains are optimized and radically shortened. The New Digital Core ultimately leads to fully digitized value chains and sustainable ecosystems across company and industry boundaries.

Need to catch up with digital technologies

This focus on digitization is also noticeable in the workplace. The infrastructures built around the New Digital Core must now be used optimally to generate an appropriate payback on the investments. It is important to ensure the availability and acceptance of the employees by penetrating the digital technologies within the company to the smallest corner. The New Digital Core is the success-critical factor that makes all other changes necessary in the "post-pandemic world" possible in the first place and creates sustainable value for companies.

Swiss companies still have some catching up to do here. 41 percent have little or no experience with decoupled data. However, if they were used together with applications, they would increase flexibility and enable adjustments in real time and without affecting other systems. A third have barely experimented with cutting-edge cloud solutions. By integrating data analytics or AI, this key technology has become a catalyst for growth. According to the study, almost half of Swiss companies do not have adequate technologies to capture and analyze data in real time. However, the use, analysis and quality of data will become standard and will have to be incorporated into every decision-making process in the company.

Source: Accenture

The Swiss industrial group Conzzeta AG is strategically realigning itself and in this context is divesting the outdoor company Mammut. The signing of the agreement for the acquisition of Mammut by Telemos marks the completion of this strategic realignment, the company announced. Subject to all necessary regulatory approvals, the closing of the divestment of Mammut is expected around mid-2021.

Outdoor company with significant milestones

Conzzeta AG, which has been listed on the stock exchange since 1996, entered the lucrative sporting goods market in 1982 with the acquisition of Arova Lenzburg, which later became the Mammut Sports Group. This era is now coming to an end. Michael Willome, CEO of Conzzeta, says: "It has been a great pleasure and honor to accompany Mammut's journey over the past almost 6 years. The Mammut team has achieved significant milestones during this time. For me, the transformation of the products into a contemporary and fresh design under the same claim of premium quality and functionality was particularly remarkable. Added to this are the new product ranges developed specifically for female customers, which now allow our female customers to fully participate in the rich Mammut offering. In addition, it is extraordinary how strongly the digital channels are expanding and thus contributing significantly to growth via mammut.com and the relevant marketplaces."

The new owners

The new owner of Mammut is Telemos Capital, a European financial investor with a Swiss background. Telemos says it draws on strong family values, entrepreneurial investment experience and a long-term partnership approach. The company was founded and is led by Philippe Jacobs, who is also co-chairman of Jacobs Holding AG, Zurich, Switzerland. The Telemos team focuses on equity investments in a limited number of private companies in the consumer goods, healthcare and business services sectors across Europe. According to the statement, the acquisition of Mammut is justified in part by its enthusiasm for mountain sports. Philippe Jacobs, Telemos Capital executive chairman, commented, "We look forward to future opportunities with Mammut premium outdoor products and services."

Further develop business model

With Telemos, the outdoor company Mammut is gaining a new, strong partner that will help the Swiss mountain sports specialist in the further development of its business model, according to the media release sent out on the company transaction. This primarily concerns the three areas of products, (digital) channels and growth in new regions. Oliver Pabst, CEO of Mammut Sports Group, is optimistic: "Today's announcement is very good news. Guided by our Purpose `To Create a World Moved by Mountains', we are looking forward to working with Telemos to further expand Mammut's leading position, Swiss 1862, as a premium brand in existing and new markets, together with our partners, and to convince with sustainable, innovative as well as digital product solutions."

Source: Mammut Sports Group

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

Switzerland continues to perform well in an international comparison when it comes to taxes on profits and income. This is shown by the latest Swiss Tax Report published by the auditing firm KPMG. It compares the profit and income tax rates of 130 countries and all 26 cantons. According to the report, the highest income tax rates in Europe are still found in Sweden (57.3%) and Denmark (56.5%) as well as Austria (55.0%). In a non-European comparison, Japan, China, Australia and South Africa have the highest top tax rates at 45% each. Various offshore domiciles and isolated Middle Eastern states still levy no taxes on income.

Rates for profit taxes in Switzerland slightly lower in 2021

After major downward movements in profit tax rates were observed in the previous year due to the STAF corporate tax reform, the tax rate reductions from 2020 to 2021 were noticeably lower. Overall, eleven cantons lowered their profit taxes this year, albeit only slightly. The cantons with the highest rates made the biggest reductions. These are the canton of Valais with around -1.6 percentage points, Zurich with around -1.5 percentage points and Bern with around -0.6 percentage points. The low-tax canton of Nidwalden has also reduced its profit tax rate comparatively sharply, by -0.7 percentage points. Across Switzerland, the average profit tax rate is currently around 14.9%, having stood at 15.1% in the previous year. At the beginning of the period under review in 2007, the average ordinary profit tax rate for companies based in Switzerland was still over 20%.

In an international comparison, Switzerland performs well. The cantons with the lowest profit tax rates occupy the top places among the locations with low tax rates after the classic offshore domiciles, Guernsey, Qatar and some (South) Eastern European countries.

Low-tax cantons: Nidwalden overtakes Lucerne

There have been hardly any shifts in the ranking of cantons with the most attractive profit tax rates compared with the previous year. The cantons of Central Switzerland and Glarus and Appenzell-Innerrhoden continue to have the lowest ordinary taxes on profits. Canton Zug, for example, has the lowest profit tax rate at 11.9%, followed by Canton Nidwalden, which has overtaken Canton Lucerne (12.3%) thanks to a slight reduction in the rate of -0.7 percentage points to just under 12%. With a profit tax rate of 21%, the canton of Berne brings up the rear - despite a tax rate reduction of -0.6 percentage points.

Moderate reduction in tax rates expected in Switzerland by 2025

For the coming years, KPMG expects a further, albeit moderate, reduction in tax rates, as some cantons have not yet implemented the full reduction in tax rates as part of the STAF corporate tax reform. They are spreading the rate reductions in stages over up to 5 years. This means that corporate taxes are expected to fall to around 14.3% by 2025. The largest tax cuts are expected in Basel-Landschaft (-4.5%), Ticino (-3.3%) and the canton of Jura (-2.0%).

Tax rates for top incomes largely unchanged

In contrast to corporate taxation, the taxation of individuals has changed little in recent years. Since the first edition of KPMG's Swiss Tax Report, the average top income tax rate in Switzerland has hardly moved at all. In 2007, for example, the rate was 34.9% and will thus remain at virtually the same level in 2021 at 33.7% (previous year: 33.8%).

The largest change could be observed in the cantons of Glarus, Schaffhausen, Jura and Fribourg, which each reduced their average income tax rates by around -0.3 percentage points in 2021. Bern and Thurgau have also slightly reduced their rates by around -0.2 percentage points each. Obwalden is the only canton to have raised its income tax rate slightly by +0.2 percentage points, but with a rate of 24.3% it is still in the top 3 of the most attractive tax cantons.

In cantons with low profit taxes, high incomes also pay low taxes

In general, it can be seen that cantons with low corporate tax rates also perform well in the comparison of top income tax rates. The lowest income tax rate, at around 22.4%, is applied by the canton of Zug, followed by Appenzell-Innerrhoden (24.1%), Obwalden (24.3%) and other cantons in central Switzerland. Top incomes are taxed highest in Geneva (44.8%). The tax rates for top incomes are also relatively high in the cantons of Basel-Land (42.2%), Vaud (41.5%) and Bern (41.0%).

Pressure on "tax havens" increases

A reorganization of international corporate taxation is on the horizon that could also have a significant impact on Switzerland. The international tax debate is currently centered on the idea of an international minimum rate for corporate taxation. The latest statements by US Treasury Secretary Janet Yellen are increasing the pressure on low-tax countries like Switzerland. The minimum tax rate of 21% proposed by Yellen is far above the average ordinary rate for profit taxes of currently 14.9% in Switzerland.

If the proposals of the OECD, the G20 and the US Treasury Department for a planned minimum taxation were implemented, this would have consequences for tax competition. This is because the restriction of international tax competition reduces the scope for positioning oneself in the location competition by means of a competitive tax regime. Switzerland in particular could lose attractiveness as a location due to its high cost level. That is why, according to KPMG, it is important to carefully cultivate other location factors. "The level of corporate tax rates is increasingly taking a back seat. Even though the tax burden will remain an important decision-making criterion, factors such as access to talent, flexible labor market conditions, and political stability and legal certainty are becoming increasingly important," explains Stefan Kuhn, head of KPMG's tax and legal advisory practice.

Source: KPMG

The succession plan has occupied Hunn for many years. The company and the Hunn garden furniture brand were built up by the Bänninger couple with a great deal of passion over 33 years and today employs almost 100 people. The company offers the largest selection of garden furniture in Switzerland and is, by its own account, the market leader in the industry. As Hunn continues, the search for a suitable buyer and successor took a lot of time. "We were looking for a successor who understands and lives on Hunn's core values and company philosophy. Selling to a large investor or a foreign company was never an option for us," explains Jürg Bänninger. In Jean-Pierre Iacopetta, the Bänningers have now found a new co-owner who will continue to run the company in the same spirit in the long term and who values each and every employee in the company, according to the statement.

Why Hunn garden furniture?

Jean-Pierre Iacopetta was enthusiastic about Hunn garden furniture from the very beginning because Hunn focuses on the customer and the product and looks at what really suits the customer. Hunn is an exemplary company with its commitment, expert knowledge and high quality standards in terms of product and service, the new co-owner explains his motivation further. The interaction among the employees and owners is very appreciative and collegial. Furthermore, Hunn has grown to become the market leader over the past 33 years, benefiting from a high level of brand awareness, long-standing employees, and a very solid and sustainable company structure.

Who is Jean-Pierre Iacopetta?

Jean-Pierre Iacopetta is a native Belgian and completed his Master's degree in Engineering, specializing in Business & Administration, at Solvay Business School in Brussels. He worked for four years as Senior Portfolio Manager at the bank BNP Paribas Fortis SA in Brussels. He then joined Compagnie Nationale à Portefeuille SA, the largest family-owned investment group in Belgium, where he gained experience in corporate investments and family business acquisitions as a Senior Investment Manager. He then moved to Switzerland and worked in the Canton of Zug, first in oil trading and later as Chairman and Managing Director of two other companies. Since the beginning of 2017, he has been Chairman of the Board and co-owner of GKM Gewerbekühlmöbel AG in Sarnen OW, one of Switzerland's leading suppliers in the field of refrigeration technology for the catering and refrigeration and freezer industries, as well as Tempco AG, which specializes in the rental of professional refrigerated cabinets. Together, the companies currently employ around 45 people.

Jean-Pierre Iacopetta grew up in a business family in Belgium. He is married and father of four children - twice twin girls.

What's next?

Hunn Gartenmöbel AG will continue to exist with its company name and in its business form as before and will remain an independent, Swiss family business in the future. The well-being of the employees is enormously important to all co-owners. Only with satisfied and motivated staff is the success of the company guaranteed, which is why the entire workforce will continue to be employed. "The Hunn team is one big family, which is why each and every employee is close to our hearts," says Barbara Bänninger

Hunn Gartenmöbel AG continues to focus on its core business, the sale of high-quality garden furniture to private and business customers, and is doing everything in its power to remain the market leader in the specialist garden furniture trade. Together with Jean-Pierre Iacopetta, Hunn continues to move forward on the path to success and aims to continuously improve and grow.

The succession of the company Hunn Gartenmöbel AG marks another milestone in the company's history. The board of directors looks very positively and with much joy into the future and is convinced that Hunn will continue to be successful in the market and stand out from the competition in the coming years.

Source and further information