Panorama 2013 Facts and figures
Swiss mechanical and electrical engineering industries
2
Key figures
8
8
Overview of 2012 business year for the MEM industries
9
New orders received by the MEM industries
10 Turnover of the MEM industries 11 Capacity utilization of the MEM industries 12 Exports of the MEM industries
Contents Panorama 2013
16 Balance of trade in goods 17 Industrial workforce
Commitment to the next generation
1
The MEM industries in a national context
6
The MEM industries offer exciting career prospects. Together they make up the largest industrial employer, and are dedicated to developing the next generation: this commitment ranges from enabling young children to make their first scientific discoveries to providing further training for experienced professionals. Sparking an interest in research
20
Design and Layout Victor Hotz AG, Lasting Impressions in Print, Steinhausen Printing FO-Fotorotar, Egg
18
Identifying and nurturing talent
22
3
Production and location factors 28
28
Exchange rate index
28 Swiss franc exchange rate 29 Labour costs in the manufacturing sector 30 Innovation ranking 31 Expenditure on research and development 31 R&D personnel by sector 32 Energy consumption of Swissmem members 32 CO2 emissions of Swissmem members 33 European industrial electricity prices in 2012 34 Overall Swiss strike statistics
4
Industry sector structure 35
35
Company size structure
36 Workforce structure by gender and area of activity 37 Trainees
Highlighting proÂfessional prospects
Conveying Knowledge
5
The MEM industries in an international context
24
26
38
Swiss industries’ headcount abroad
38 Headcount of industry overall by global region 39 Headcount of foreign industrial companies in Switzerland 40 Foreign capital holdings of Swiss industry by global region 41 Capital holdings of foreign companies in Switzerland 42 Key machinery-exporting countries 42 Rankings in selected product areas 43 Machinery exports per capita
38
Swissmem – We’re in your corner! Providing services, representing your interests and assuring Switzerland’s position as a strong location for industry and research
Our areas of focus Swissmem represents the interests of more than 1,000 companies in the Swiss mechanical and electrical engineering industries (MEM industries) as well as those in related technology-oriented sectors vis-à-vis economic, political and public audiences. Swissmem is committed to open competition, innovation, entrepreneurial freedom and social responsibility, and also campaigns for a constructive social partnership.
Services Professional advice free of charge from specialists, a first-rate training offering and a low-cost compensation fund: Swissmem provides its services to strengthen Switzerland as a place for industry and research. Representation Based on its broad industry expertise, Swissmem campaigns for the best possible regulatory parameters in the interests of the international competitiveness of Swiss industry. Networking Cooperation and professional exchanges of ideas and views in 23 specialist divisions, various local discussion groups and specialist committees: Swissmem creates strong net- works with a view to ensuring long-term success.
Swissmem Panorama 2013 – Editorial
5
Hans Hess, President of Swissmem
Dual education system is crucial to industrial success Last year, the companies of the MEM industries were seriously challenged to regain their short-term and medium-term competitiveness. Yet despite the continued strength of the franc and weak demand in key markets, a slight recovery trend became apparent towards the end of 2012. In the following interview, Swissmem President Hans Hess discusses the areas in which companies are facing particular challenges. In addition, he underlines the great importance of Switzerland's dual education system. Mr Hess, what is your assessment of the MEM industries’ current situation? The situation remains difficult. Broadly speaking, large companies with an international presence are faring better than SMEs. Even so, the first signs of a recovery became apparent in the fourth quarter of 2012, following a period of some 18 months in which incoming orders in the MEM industries declined, in some areas massively. Whether or not this recovery is sustainable will only become apparent as the current year unfolds. I am cautiously optimistic. That said, the risk of the crisis resurging in Europe remains very real. What are the challenges confronting the MEM industries? The pressure to adapt will remain high both in the short and long term, particularly for SMEs. In the EU, the MEM industries’ key sales market, economic prospects are not encouraging, with a number of indicators pointing to recession. Global competition is becoming ever fiercer due to the increasing amount of competition from Asia. And the Swiss franc remains overvalued against the euro. Companies in the MEM industries
are therefore having to improve their competitiveness continuously. They are having to bring a greater international element to their business models, systematically increase productivity, improve their agility, enhance their innovativeness, and ensure a sufficient supply of talented young specialists. What is Swissmem doing in response to these challenges? We are continuing to targetedly adapt our service portfolio so as to provide optimum support to our member companies as they seek to master these challenges. For example, we are building up a new knowledge and technology transfer network, and trying to promote cooperation between MEM companies in a number of different areas. In addition, we are strengthening our activities in the area of young talent development and training. The dual education system is losing support among the Swiss people. What is your view of this development? This is something that concerns me greatly. Individuals with basic vocational training and appropriate further training are of great importance to Swiss industry.
These are the people who implement customer-focused innovation, support and advise our customers with their huge expertise, work tirelessly to improve efficiency, and ensure that “Swiss-made” remains a byword for quality. It's worrying that high-performing pupils are increasingly pursuing – and being encouraged to pursue – purely academic schooling. For many young people, this is simply not the right route to take. Why are you convinced that vocational training is the better way forward? Many young people, teachers and parents underestimate the quality of vocational training as an excellent first step towards a professional career. Vocational training is about conveying the ability to do things, as well as knowledge. Working in multi-functional teams encompassing people of all age groups is a good way of enhancing social skills. And young people learn at a very early stage to take on responsibility and understand what makes a company successful. Moreover, the Swiss education system is very interchangeable. Apprentices who have trained as general mechanics can continue their development as far as an ETH doctorate if they show the appropriate inclination and performance. That is a unique feature of the Swiss system. Obviously we also need university graduates, but without skilled technical professionals, Switzerland would be in jeopardy as a manufacturing centre. Where do you think Swissmem should be focusing its efforts to develop young talent and encourage further training? We support the people working in the MEM industries throughout their career. Our young talent campaign is seeking to instil a greater degree of enthusiasm for technology in children and young people. In the professional orientation phase, we help young people choose a profession and apply for an apprenticeship. In addition, we provide up-to-date, practice-driven training materials for industrial professions.
Swissmem Panorama 2013 – The MEM industries in a national context
6
1 | The MEM industries in a national context
Workforce in Switzerland Full-time equivalents
Other sectors 14%
MEM industries 12% Other manufacturing 7%
Education 5% Energy and water supply 1% Business-related services 11%
Healthcare and social services 6% Public administration 4% Trading and automotive 15%
Construction 9% Hotels and restaurants 5% Transport and communications 5% Financial and insurance services 6%
Year 2012 Source: Besta As per NOGA classifications 2008
Added value in Switzerland Sectors in %
Other sectors 16%
MEM industries 9% Other manufacturing 9%
Agriculture and forestry 1% Education 1% Business-related services 8%
Energy and water supply 2% Construction 5% Hotels and restaurants 2%
Healthcare 4% Public administration 10%
Trading and automotive 18%
Year 2010 Source: FSO As per NOGA classifications 2008
Transport and communications 4% Financial and insurance services 11%
Swissmem Panorama 2013 – The MEM industries in a national context
7
Total Swiss goods exports in 2012 Sectors in %
Other sectors 8% Foodstuffs 4% Watches 11% Textiles 2% Electricity 3% Other chemical products 7%
Mechanical engineering 11% Precision instruments 7% Electrical engineering, electronics 6% Metalworking 6% Vehicles 3%
Pharma 32%
Source: FCA
Did you know that ...
of the goods exported by the MEM industries
60%
go to countries in the European Union?
A key pillar of the Swiss economy
The MEM industries are responsible for 9.2% of Swiss added value and account for 32.2% of all goods exports. They employ more than 10% of the workforce in Switzerland, including more than 20,000 trainees. This makes the MEM industries an important pillar of the Swiss economy.
Since 2002, MEM industry exports have risen from CHF 54 billion to CHF 65 billion (+ 20%), reaching a record high of CHF 80 billion in 2008. Over the same period, Switzerland’s total goods exports rose from CHF 130 billion to CHF 200 billion.
Within the manufacturing sector, the MEM industries represent the largest sub-sector, accounting for more than 58.1% of manufacturing staff and about 50% of industrial added value. Furthermore, alongside the chemical-pharmaceutical industry, the MEM industries represent Switzerland’s key export sector.
Over the last 10 years, the secondary sector of the economy has recorded personnel growth of 5.9% overall. The tertiary sector has increased more strongly over the same period (12.6%). Despite the increasing importance of the services sector, Switzerland remains the most industrialized nation in the world for its size of population.
Swissmem Panorama 2013 – Key figures
8
2 | Key figures
Overview of 2012 business year for the MEM industries 2010
2011
2012
Change in %
New orders 1)
99.3
98.8
95.0
– 3.8
Of which domestic
89.1
87.8
81.2
– 7.5
Of which foreign
102.7
102.6
99.7
– 2.8
Turnover 1) Of which domestic
98.5 107.2
100.6 114.2
103.6 114.1
3.0 – 0.1
96.0
96.8
100.8
4.1
82.5%
89.6%
86.0%
Of which foreign Capacity utilization 2) MEM industries Exports 3) Metallurgical industry
million CHF
12 738.5
13 023.6
12 011.2
Mechanical engineering and vehicle construction
million CHF
28 214.6
29 725.9
27 089.8
–7.8 –8.9
Electrical engineering/electronics
million CHF
12 234.4
11 781.8
11 371.8
– 3.5
Precision instruments
million CHF
14 394.7
14 010.5
14 120.6
0.8
Total exports
million CHF
67 581.5
68 541.8
64 593.3
– 5.8
34.9%
34.7%
32.2%
– 5.8
Proportion of overall Swiss exports Domestic turnover 4) Total
million CHF
19 501.6
21 172.6
19 403.2
– 8.4
Total goods turnover of MEM industries
million CHF
87 060.6
89 714.4
83 996.5
– 6.4
329 426
337 809
341 533
1.1
Full-time employees 5) MEM industries total * S ources: 1) 290 Swissmem reporting members (indexed) 2) KOF/ETH, annual average 3) FCA 4) Based on export ratio (2012: 76.9%) of Swissmem reporting companies; excluding ser vices 5) BFS (BESTA), including people employed in the watchmaking industr y
2012: Business picks up from a low level
A look at the overall development of the MEM industries in 2012 reveals a mixed picture. While sales achieved a slightly positive result (+ 3.0%), both order intake (– 3.8%) and goods exports from Switzerland (– 5.8%) once again performed negatively. The introduction of the minimum exchange rate of CHF 1.20 against the euro brought companies a degree of planning certainty and supported them in their efforts to regain their international competitiveness. Indeed, the first signs of a recovery manifested themselves in the fourth quarter of 2012: Export prices picked up slightly (+ 0.9%), and there was
even a sharp improvement in order intake compared to the fourth quarter of 2011 (+ 9.8%). Only around half of the marked reduction in staffing levels in the MEM industries at the beginning of the economic crisis – the number of full-time employees declined from 355,799 to 329,057 between 2008 and 2010 – has been reversed. Despite a great number of efficiency and productivity improvement measures, which companies were forced to implement due to the persistently high pressure on margins, headcount in the MEM industries rose to 341,553 full-time equivalents in 2012 (+ 1.1% compared to 2011).
Swissmem Panorama 2013 – Key figures
9
New orders received by the MEM industries 45%
200
35%
180
25%
160
15%
140
5%
120
0%
100
– 5%
80
– 15%
60
– 25%
40
– 35%
20
– 45%
2002
2003
2004
Change in %
2005
2006
2007
2008
2009
2010
2011
2012
0
Index of total new orders received
Source: 290 repor ting Swissmem companies Indexed, Q1 2001 = 100
New orders received by the MEM industries In % prev. year
Of which foreign
Export rate in %
–
–
75.2
–11.1
– 9.8
74.0
–0.4
3.9
74.9
7.1
–6.9
11.6
78.3
4.5
6.5
3.8
78.8
112.3
20.1
10.3
22.0
81.1
2007
137.3
22.3
25.8
21.3
80.5
2008
113.8
– 17.1
–7.5
– 19.4
78.3
2009
85.3
– 25.0
–17.7
– 27.0
76.5
2010
99.3
16.4
17.7
15.5
77.6
2011
98.8
– 0.5
– 1.5
– 0.1
76.4
2012
95.0
– 3.8
– 7.5
– 2.8
76.9
2012 I
98.9
– 16.8
– 9.6
– 19.1
74.3
2012 II
95.7
– 4.3
– 0.2
– 5.5
76.4
2012 III
86.6
0.6
– 6.8
– 2.6
77.2
2012 IV
98.9
9.8
– 12.6
15.9
79.8
Year/Quarter
Total
2001
90.5
–
2002
81.3
– 10.2
2003
83.6
2.8
2004
89.5
2005
93.5
2006
Source: 290 repor ting Swissmem companies Indexed, Q1 2001 = 100
Of which domestic
Swissmem Panorama 2013 – Key figures
10
Turnover of the MEM industries 25%
200
20%
180
15%
160
10%
140
5%
120
0%
100
– 5%
80
– 10%
60
– 15%
40
– 20%
20
– 25%
2002
2003
2004
Change in %
2005
2006
2007
2008
2009
2010
2011
2012
0
Index of total turnover
Source: 290 repor ting Swissmem companies Indexed, Q1 2001 = 100
Turnover of the MEM industries Total
In % prev. year
Of which domestic
Of which foreign
2001
100.9
–
–
–
2002
89.1
– 11.7
– 8.3
– 12.8
2003
85.7
– 3.8
– 3.9
– 3.8
2004
90.7
5.8
4.3
6.4
2005
93.4
3.0
– 0.9
4.3
2006
103.6
10.9
4.5
12.9
2007
118.0
13.9
14.8
13.6
2008
124.8
5.8
6.3
5.6
2009
99.5
– 20.3
– 16.6
– 21.2
2010
98.5
– 1.0
7.3
– 3.4
2011
100.6
2.1
6.5
0.8
2012
103.6
3.0
– 0.1
4.1
2012 I
99.9
2.1
10.6
– 0.5
2012 II
102.6
0.7
– 2.4
1.8
2012 III
102.4
2.8
– 2.7
4.7
2012 IV
109.6
6.5
– 4.7
10.5
Year/Quarter
Source: 290 repor ting Swissmem companies Indexed, Q1 2001 = 100
Swissmem Panorama 2013 – Key figures
11
Capacity utilization of the MEM industries 95%
90%
85%
80%
75%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: KOF
Did you know that ...
long-term average capacity utilization in the MEM industries is
86.5%
Stagnating sales
The sales of companies in the MEM industries rose slightly according to the quarterly statistics provided by Swissmem surveys. This rise needs to be viewed against the backdrop of low prior-year values, however, which makes it too early to talk about a sustainable recovery. Sales remain almost 25% below the index level of the record year 2007. While domestic sales declined over the course of the year, foreign sales experienced contrasting developments. In the fourth quarter in particular, foreign sales recorded a sharp rise of 10.5%.
Capacity utilization of companies in the MEM industries amounted to 86% for 2012 as a whole, which is 0.5 percentage points below the long-term industry average. However, capacity utilization recorded a decline of 89.9% to 83.6% over the course of the year itself. Increased volatility in end markets together with fierce competition from Asian competitors is forcing companies to remain very flexible.
Swissmem Panorama 2013 – Key figures
12
Exports of the MEM industries 2012 Share of economic regions in %
Oceania 1% Asia 19%
Latin America 3% North America 11%
EU 27 60%
Africa 2% Other Europe 4%
S ource: FCA
Did you know that ...
the countries that border Switzerland account for
41% of all MEM industry exports?
Slowdown in goods exports
The markets showed varying trends from region to region. EU countries, which are still the key market for Swiss MEM products with 59.6% of export sales, accounted for fewer exports in 2012 (– 6.4%), as did the countries of Asia (– 11.8%). However, exports to the USA and Japan both rose, by + 2.7% and + 3.5% respectively. Overall, the MEM industry exported goods to the value of CHF 64.6 billion in 2012. This is 5.8% less than in the previous year. The proportion of exports accounted for by Asia has risen from 14.5% to 18.7% over the last 10 years, and in 2011 even exceeded the 20% mark. The growth in exports to China in particular has increased the significance of the Asian markets in a long-term comparison. While exports to China accounted
for just 2.8% of total exports 10 years ago, this key Asian market accounted for more than 5.1% of exports last year. Germany, the key sales market for the MEM industries, has likewise grown in importance over the last 10 years. Its share has risen from 25.8% to 27% within the last decade. The US, which is the second most important market for the MEM industries after Germany, has lost only a little of its significance. Whereas the USA accounted for 11.6% of exports 10 years ago, the figure for 2012 was 10.5%.
Swissmem Panorama 2013 – Key figures
13
Exports of the MEM industries 2012 Shares by country
2010
2011
2012 ∆ in % to prev. year
Country
million CHF
share in %
million CHF
share in %
million CHF
share in %
Europe *
43 912.5
65.0
43 781.7
63.9
41 302.8
63.9
– 5.7
Germany
17 860.1
26.4
18 427.5
26.9
17 440.7
27.0
– 5.4
France
4 568.5
6.8
4 254.6
6.2
3 876.7
6.0
– 8.9
Italy
3 496.6
5.2
3 379.9
4.9
2 884.9
4.5
– 14.6
Netherlands
3 259.2
4.8
2 633.8
3.8
2 621.6
4.1
– 0.5
UK
2 366.1
3.5
2 380.8
3.5
2 353.3
3.6
– 1.2
Austria
2 201.0
3.3
2 317.4
3.4
2 146.3
3.3
– 7.4
Belgium
1 454.0
2.2
1 388.0
2.0
1 280.9
2.0
– 7.7
777.7
1.2
915.2
1.3
1 044.5
1.6
14.1 – 24.5
Russia Spain
1 393.6
2.1
1 232.7
1.8
930.8
1.4
Poland
829.9
1.2
838.7
1.2
857.4
1.3
2.2
Sweden
755.4
1.1
822.7
1.2
804.7
1.2
– 2.2
Czech Republic
770.6
1.1
784.3
1.1
727.5
1.1
– 7.2
Turkey
661.6
1.0
733.2
1.1
634.1
1.0
– 13.5
Other
3 518.2
5.2
3 672.9
5.4
3 699.4
5.7
0.7
Asia
12 895.4
19.1
13 839.8
20.2
12 063.2
18.7
– 11.8
China
4 179.6
6.2
4 774.3
7.0
3 317.4
5.1
– 30.5
Japan
1 204.1
1.8
1 298.7
1.9
1 344.4
2.1
3.5
South Korea
1 065.5
1.6
1 059.0
1.5
906.7
1.4
– 14.4
India
1 050.8
1.6
1 030.6
1.5
873.3
1.4
– 15.3
United Arab Emirates
499.6
0.7
848.0
1.2
819.1
1.3
– 3.4
Singapore
724.0
1.1
640.2
0.9
684.9
1.1
7.0
Saudi Arabia
462.6
0.7
409.4
0.6
659.1
1.0
61.0
Hong Kong
552.1
0.8
582.4
0.8
618.1
1.0
6.1
Other
3 042.3
4.5
2 966.5
4.3
2 840.2
4.4
– 4.3
Americas
8 615.5
12.7
9 021.8
13.2
9 343.1
14.5
3.6
USA
6 389.1
9.5
6 606.8
9.6
6 785.8
10.5
2.7
Brazil
712.3
1.1
759.3
1.1
734.7
1.1
– 3.2
Canada
446.6
0.7
542.1
0.8
567.4
0.6
4.7
Mexico
433.0
0.6
372.6
0.5
406.5
0.2
9.1
Other
634.5
0.9
741.0
1.1
848.7
1.3
14.5
Africa
1 345.9
2.0
1 245.8
1.8
1 126.1
1.7
– 9.6
South Africa
338.8
0.5
391.4
0.6
303.5
0.5
– 22.5
Egypt
189.7
0.3
146.6
0.2
138.2
0.2
– 5.7
Other
728.8
1.1
648.1
0.9
684.4
1.1
5.6
Oceania
812.3
1.2
820.2
1.2
758.2
1.1
– 7.6
Australia
695.3
1.0
739.9
1.1
677.7
1.0
– 8.4
117
0.2
80.3
0.1
80.5
0.1
0.2
67 581.5
100.0
68 541.8
100.0
64 593.3
100.0
– 5.8
Other MEM industries total Source: OZD * Europe: EU27 & rest of Europe
Swissmem Panorama 2013 – Key figures
14
Exports of the MEM industries 2012 Share of product fields
Vehicles 7%
Metalworking 19%
Mechanical engineering 37%
Electrical engineering, electronics 17% Precision instruments 20% Source: FCA
Did you know that …
medical instruments and appliances have increased their proportion of exports by
10
percentage points in the last 10 years?
Only precision instruments able to maintain momentum
With the exception of precision instruments (+ 0.8%), goods exports recorded a year-on-year decline in all product areas. Mechanical engineering (– 12.3%) and metalworking (– 7.8%) exports were affected the most, while the electronics and electrical engineering sectors saw a somewhat more moderate downturn (– 3.5%). With a share of some 34%, mechanical engineering is by far the most significant export area of the MEM industries. Precision
instruments in particular have recorded continuous growth in recent years. Whereas they accounted for just 5.7% of exports 20 years ago, this proportion has now risen to more than 20%. Medical instruments and appliances have been the largest individual product field for many years. These recorded an export volume of CHF 8,849 million in 2012, or five times higher than two decades ago.
Swissmem Panorama 2013 – Key figures
15
Exports of the MEM industries Share of product fields
Product Mechanical engineering
2010
2011
2012
million CHF share in %
million CHF share in %
million CHF share in %
∆ in % to prev. year
24 200.6
35.8
25 072.8
36.6
21 980.0
34.0
– 12.3
Machine tools for metalworking
3 133.1
4.6
3 808.8
5.6
3 700.5
5.7
– 2.8
Pumps, compressors, fans
2 542.0
3.8
2 489.2
3.6
2 347.2
3.6
– 5.7
Turbines, power plants, etc.
2 229.0
3.3
1 953.4
2.8
1 918.2
3.0
– 1.8
Graphic machinery
1 748.5
2.6
1 529.6
2.2
1 448.9
2.2
– 5.3
Heating and refrigeration technology
1 332.8
2.0
1 324.7
1.9
1 265.8
2.0
– 4.4
Textile machinery
1 316.7
1.9
1 476.2
2.2
1 071.1
1.7
– 27.4
Household appliances
– 1.9
1 053.6
1.6
1 033.2
1.5
1 013.3
1.6
Packaging and filling machinery
884.7
1.3
926.5
1.4
947.1
1.5
2.2
Office machinery
943.7
1.4
920.5
1.3
825.0
1.3
– 10.4
Lifting and handling equipment
696.2
1.0
791.5
1.2
757.8
1.2
– 4.3
Industrial heat treatment equipment
739.6
1.1
762.1
1.1
754.7
1.2
– 1.0
Plastics machinery
776.4
1.1
775.1
1.1
694.8
1.1
– 10.4
Food processing machinery Other
650.5
1.0
743.4
1.1
690.9
1.1
– 7.1
5 256.3
7.8
5 230.2
7.6
4 544.7
7.0
– 13.1 0.8
14 394.7
21.3
14 010.5
20.4
14 120.6
21.9
Medical instruments and apparatus
9 059.5
13.4
8 614.2
12.6
8 849.0
13.7
2.7
Mech. instruments for measuring, testing
3 660.8
5.4
3 771.6
5.5
3 710.4
5.7
– 1.6
Optical appliances
1 037.6
1.5
1 067.5
1.6
1 036.8
1.6
– 2.9
Survey instruments
636.8
0.9
557.2
0.8
524.4
0.8
– 5.9
Precision instruments, apparatus and devices
Electrical engineering/electronics
12 234.4
18.1
11 781.8
17.2
11 371.8
17.6
– 3.5
Electrical switchgear and cables
3 802.8
5.6
3 647.3
5.3
3 577.1
5.5
– 1.9
Power generation apparatus and electric
2 952.3
4.4
2 956.2
4.3
2 918.2
4.5
– 1.3
Electrical apparatus such as magnets, batteries, etc.
2 129.0
3.2
2 085.9
3.0
1 904.0
2.9
– 8.7
Electrical and electronic components
1 946.0
2.9
1 791.3
2.6
1 718.2
2.7
– 4.1
Telecommunication equipment
717.3
1.1
616.0
0.9
643.6
1.0
4.5
Controlling, signalling and meas. instruments
687.1
1.0
685.0
1.0
610.7
0.9
– 10.9
12 738.5 2 345.9
18.8 3.5
13 023.6 2 419.3
19.0 3.5
12 011.2 2 285.6
18.6 3.5
– 7.8 – 5.5
Non-ferrous metals
2 349.2
3.5
2 464.6
3.6
2 097.7
3.2
– 14.9
Tools and moulds
2 035.4
3.0
2 041.6
3.0
2 068.0
3.2
1.3
Other
6 008.0
8.9
6 098.1
8.9
5 559.9
8.6
– 8.8
Vehicles
4 013.4
5.9
4 653.1
6.8
5 109,8
7,9
9.8
Road vehicles
1 975.7
2.9
2 109.3
3.1
2 171.0
3,4
2.9
Aircraft and spacecraft
1 377.3
2.0
1 603.2
2.3
1 920,0
3,0
19.8
642.4
1.0
912.0
1.3
987,4
1,5
8.3
18.0
0.1
28.6
0.1
31.4
0.1
9.8
67 581.5
100.0
68 541.8
100.0
64 593.3
100.0
– 5.8
Metals Machine components
Rolling stock Other MEM industries total Source: FCA
Swissmem Panorama 2013 – Key figures
16
Balance of trade in goods in CHF million
« Import surplus
Export surplus » Precision instruments Vehicles Electrical engineering/electronics Metallurgical industry Mechanical engineering Watches Pharma Textiles Energy sources Foodstuffs All goods
– 20 000
– 10 000
0
10 000
20 000
30 000
40 000
Source: FCA
Record Swiss balance of trade surplus
Despite the difficult market environment, Swiss trade with the rest of the world increased on both the export and import side in 2012. Overall, the balance of trade posted a new record surplus of CHF 24.4 billion, exceeding the previous year’s record by 860 million. The export surplus, which amounts to just under 2%, is solely attributable to the watch, pharmaceuticals and food industries, and was generated outside Europe. The Swiss MEM Industries recorded an import surplus of CHF 2,318 million, with the automotive sector in particular standing out: Imports stood at CHF 17,073 million last year, far higher than the equivalent export figure of CHF 5,110 million.
Whereas overall demand from Europe stagnated (EU: – 1%), sales to the other continents rose, in some cases significantly. Overall exports to North and Latin America rose by around 10% in each case, whereas sales to Asia (+ 2%) and Africa (+ 3%) rose modestly. However, exports to China (– 12%) and India (– 10%) declined strongly. With around 340,000 full-time employees, the MEM industries together continue to make up the largest manufacturing employer in Switzerland. Over the last 10 years, headcount in these industries has risen slightly. By contrast, Swiss manufacturing industry as a whole has seen a slight reduction in headcount.
Swissmem Panorama 2013 – Key figures
17
Industrial workforce 2012 Sectors in %
Other manufacturing industry 8% Metallurgical industry 16%
Rubber and plastics 6% Textiles 2% Wood/graphic industry 10%
Machinery and tools 20%
Foodstuffs 9% Pharma 6%
Electronics 6% Data processing/watches 17%
Source: Besta
Industrial workforce Industrial workforce
MEM industries
Employees
∆ in %
Employees
∆ in %
share in %
2000
593 172
1.5
333 656
2.3
56.2
2001
599 832
1.1
333 261
1.7
55.6
2002
583 211
– 2.8
321 113
– 3.6
55.1
2003
561 911
– 3.7
308 149
– 4.0
54.8
2004
560 959
– 0.2
310 044
0.6
55.3
2005
562 525
0.3
311 432
0.4
55.4
2006
576 983
2.6
324 245
4.1
56.2
2007
594 608
3.1
339 363
4.7
57.1
2008
614 816
3.4
355 799
4.8
57.9
2009
582 417
– 5.3
332 411
– 6.6
57.1
2010
579 163
– 0.4
329 426
– 0.9
56.8
2011
585 475
1.1
337 887
2.2
57.7
2012
587 817
0.4
341 533
1.1
58.1
Year
Source: BESTA
Commitment to the next generation An interest in technology and the natural sciences is kindled at an early age. Swissmem assists young researchers as they develop into sought-after specialists.
Technical education has an important role to play as part of a broader cultural education. It enables young people to get to grips with new technologies in an active and in-depth way, while at the same time enabling Switzerland to remain an innovative centre of industry and research. Swissmem helps schoolchildren to gain their first experiences of the world of technology in a playful way while still young. A creative approach to teaching children about technology sparks an interest in research and establishes numerous references to the everyday world. Working with its partners, Swissmem encourages this exchange and helps teachers design their teaching material.
Field trips and in-depth exploration of particular subjects in science and technology teaching enable individuals to identify their own inclinations and abilities. Swissmem highlights the professional prospects open to interested young people, and makes it easier for them to get in touch with companies that offer training. The dual education system has a long tradition in the industrial sector, and is one of Switzerland’s strengths as a centre of industry and research. An apprenticeship makes professionals out of talented young people, and opens up avenues to many different further training opportunities. Through a broad-based commitment to training companies, teachers, professional advisers and parents, Swissmem strengthens the dual education system and enhances its image in society.
Commitment at every level of education Specialist teaching: Materials and concepts Sparking an interest in research
Professional training: Information & services Identifying and nurturing talent
Highlighting professional prospects
Empowering and developing trainees
Expanding and updating knowledge
Primary / explore-it Primary & Sec. I / TunSchweiz Primary & Sec. I / Technology Days
Swissmem Professional Training Institute
Sec. II / Technology Weeks Tecmania.ch Job descriptions & careers Education trade fairs and information for parents Companies: Support and training
Swissmem Executive Training School
Swissmem Panorama 2013 – Developing young talent
19
Sparking an interest in research An interest in technology develops most up to the age of around 14. After that, it increases only gradually. This makes it all the more important to give children the chance to experience technology as fun at a young age. Learning materials such as those provided by explore-it offer schoolchildren many different ways of immersing themselves in technology and science and exploring new things.
Identifying and nurturing talent Modern technology is often hidden behind smooth surfaces and simple control elements. But how do you get a glimpse of the “heart” of technology? Swissmem supports the staging of Technology Days and Technology Weeks, where schoolchildren are given the opportunity to learn about basic principles up close and apply these principles themselves. At the same time, these events help them to identify their own interests and talents, making it easier for them to choose the right professional path at a later stage.
Highlighting professional prospects The challenges of today’s society call for new solutions. Young people who have completed a technical apprenticeship are ideally placed to develop such solutions. However, young people often know little about what a technical profession involves, and what possibilities are on offer. Through initiatives such as tecmania.ch, Swissmem aims to raise the profile of technical professions by providing young people, parents and teachers with helpful information.
Empowering and developing trainees The MEM industries have traditionally been strongly committed to training young talent. The practical and theoretical content of the various apprenticeships is continuously updated to reflect current needs, and therefore represents an outstanding basis for future professional activity. For a number of years, apprenticeships have also started to prepare young people for an international career at an early stage. Once they have completed their training, they therefore have all sorts of options not just in Switzerland, but also abroad.
Sparking an INTEREST in research Experimenting, comparing, or simply fiddling about: The focus of technology teaching at primary level is on having fun exploring and trying things out. The basic concepts can be taught simply with appropriate materials.
Swissmem Panorama 2013 – Developing young talent
21
86 %
of teachers who took part in an explore-it survey were convinced that children are interested in technology. At same time, they also said that it was primarily a lack of appropriate working materials that prevented them from giving their pupils more opportunity to get to grips with technology.
How would you rate your pupils’ interest in technology?
Low 14% Very high 27%
High 59% Source: explore-it
Primary level – explore-it The “explore-it” foundation develops learning materials that nurture an understanding of technology, science, and innovation in children of nine years and over. Swissmem supports training courses for teachers and the provision of appropriate material for teaching in schools. The learning materials have been well received by teachers. In 2012, 450 teachers attended explore-it courses, and 16,000 schoolchildren in Switzerland and Liechtenstein received discounted learning materials. One set of materials provides “exploration, discovery and more” for around 20 hours of teaching time.
Specialist education – educamint The teaching of mathematics, IT, natural sciences and tech nology (MINT) poses plenty of challenges, but also offers lots of ways of enabling pupils to understand their environment in an exciting way. A wide range of curricular and extra-curricular materials is available to teachers looking to supplement their teaching spectrum. The new education server www.educamint.ch provides a comprehensive overview. Thanks to various filter options, teachers can swiftly and simply find the right package for a lively teaching session. www.educamint.ch
www.explore-it.org
Identifying and nurturing talent Creating bridges to the latest technology appli cations and environmental themes has the effect of greatly increasing young people’s motivation and learning interest. Various initiatives encourage this exchange and create links to the real world of work.
Swissmem Panorama 2013 – Developing young talent
23
Primary level, Sec. I & II – Technology Days, Technology Weeks Swissmem helps to organize Technology Days and Technology Weeks that are geared to the needs of individual schools. These theme-based events are jointly organized by schools, companies, and partner organizations such as Engineers Shape our Future, Natech Education, Jugend&Wirtschaft and Swissmem. The aim is to promote discovery in learning and an exchange of ideas between schools and the private sector.
Primary level, Sec. I – TunSchweiz “Tun” (Technology and Natural Sciences) is an interactive experience for children and young people that is staged at large public fairs. Two “Tuns” are held in Switzerland every year. This event, which is jointly hosted by various projects for promoting young talent, gives pupils, teachers and other interested parties the opportunity to experience the fascination of technology and science up close and in a very varied way.
www.jugend-wirtschaft.ch www.ingch.ch www.natech-education.ch
www.tunSchweiz.ch
How important is science teaching?
15
37
32
57%
16
It is worth going the extra mile to learn science because it will help me in the job I want to do.
13
30
37
20
The things I learn in science are important to me because I need them for when I get a job.
16
42
30
12
I study for science classes because I know it will benefit me.
13
35
36
16
Learning science is worthwhile because what I have learned will improve my professional prospects.
10
29
41
21
I will learn many things in science that will help me to get a job.
0%
20%
40%
60%
80%
do not agree at all
do not really agree
basically agree
wholly agree
Source: Pisa study
100%
of pupils believe that they will be able to apply what they have learnt in science in their later working lives. Swiss pupils attach a significantly lower than average importance to science than most other OECD nations.
Highlighting pro足 fessional prospects Technology professionals have good future prospects. Yet companies are finding it increasingly difficult to fill their apprenticeship places. Swissmem uses a number of different measures to highlight the appeal of technical training, and support companies in their efforts to attract the next generation.
Swissmem Panorama 2013 – Developing young talent
25
In 2012, there were around
92,000
apprenticeships on offer throughout Switzerland. More than a quarter of training places involved technology professions. Demand for technical training among school leavers is lower than the current supply.
Trainees by occupational category Sectors in %
Manufacturing 5% Sales 11% Technical professions 27% Architecture and construction 11% Office and information management 19% Services 11%
Agriculture 5% IT 2% Healthcare and social services 7%
Printing, design, arts and crafts 2% Source: Apprenticeship Barometer
Professional orientation – job descriptions and careers According to the PISA study, if young people are to seek employment in any area of science or technology, schools must do more than just convey knowledge. Curricula that encourage independent research, provide sufficient time for exchange and incorporate information that is relevant to real-life professional needs are demonstrably able to stimulate interest in careers in science and technology. Identifying an individual’s capabilities and interests should take place at the start of the process of choosing a career. By providing comprehensive information on job descriptions and careers, Swissmem builds a platform from which talented young people can find the right path into professional life.
Professional orientation – Tecmania The young talent initiative tecmania.ch is an innovative way of acquainting young people with the fascination of technology and science. Internet, social media and events (careers fairs, etc.) are used to bring job profiles to life and establish contact with companies. www.tecmania.ch
Conveying knowledge Switzerland’s dual education system is a key factor in the success of the companies in the MEM industries. Their commitment to the next generation is crucial. And it is not just in Switzerland that these companies are committed to apprenticeships. An increasing number of them also train young people abroad.
Swissmem Panorama 2013 – Developing young talent
27
Students in higher professional training
Mechanical engineering, metalworking Electronics, automation
1823
2500 2000
young people attended lessons and courses at the Swissmem Executive Training School last year. Almost as many took part in training courses provided within companies. A brief glance at the subject-specific training courses on offer in the MEM industries (left) reveals that student numbers have increased slightly in recent years.
1500 1000 500 0 2006/7
2007/8
2008/9
2009/10
2010/11
Source: SFSO
Vocational training with an eye on export markets
India As part of a pilot project, 10 Swiss industrial companies have been training apprentices in India since 2009. The aim is to give the dual education system a stronger foothold in India, and to train 1,000 young people up to qualified level in Swissmem professions by 2022.
China BĂźhler gives apprentices the opportunity to do part of their training at its plant in China. Apprentices remain linked to their vocational school in Switzerland via a virtual classroom.
South Africa In South Africa, Schindler is training general mechanics using an approach based on the Swiss dual system.
UK Bobst offers apprentices the chance to do internships in the UK and Germany. In future, opportunities will also be available in Italy and France.
Swissmem Panorama 2013 – Production and location factors
28
3 | Production and location factors
Exchange rate index 160
Appreciation of CHF «
150 140 130 120 110 100 90
«
80
2008 Real exchange rate indices
2009
2010
2011
2012
Depreciation of CHF
Nominal exchange rate indices
Source: SNB Expor t-weighted index of currency exchange rates of major trading par tners Indexed, Jan 1999 = 100
Swiss franc exchange rate Country
Currency
2010
2011
Change over previous year 2012 in %
Euro countries
1 EUR
1.381
1.234
1.205
– 2.4
USA
1 USD
1.042
0.887
0.938
5.7
UK
1 GBP
1.606
1.421
1.486
4.6
Japan
100 JPY
1.188
1.113
1.176
5.7
Brazil
1 BRL
0.592
0.531
0.481
– 9.4
Russia
100 RUB
3.436
3.020
3.019
– 0.1
India
100 INR
2.282
1.905
1.757
– 7.8
China
1 CNY
0.154
0.137
0.149
8.8
Source: SNB
Swissmem Panorama 2013 – Production and location factors
29
Labour costs in the manufacturing sector in 2011 Euro
Euro
Euro
Norway
52.61
33.99
18.62
Switzerland
44.96
28.87
16.09
Belgium
40.66
20.36
20.30
Sweden
40.46
22.43
18.03
Denmark
37.64
27.83
9.81
West Germany 37.57
21.37
16.20
France
35.91
18.16
17.75
Germany
35.66
20.40
15.26
Netherlands
32.88
18.38
14.50
Austria
31.88
16.63
15.25
Ireland
29.19
20.00
9.19
Japan
27.46
15.18
12.28
Italy
26.45
14.83
11.62
USA
23.81
15.82
7.99
UK
23.12
16.56
6.56
East Germany
22.42
13.72
8.70
Spain
21.88
11.93
9.95
Greece
15.85
9.25
6.60
Czech Republic 9.99
5.67
4.32
Hungary
7.35
4.06
3.29
Poland
6.46
4.41
2.05
Romania
3.73
2.49
1.24
2.82
2.04
0.78
Bulgaria
0 Hourly wage
10
20
30
40
50
60
Non-wage labour costs
Source: Institut der deutschen Wir tschaft, Cologne
Exchange rate floor leads to stability
The exchange rate floor of CHF 1.20 against the euro has been beneficial for companies in the MEM industries. This provides companies with a reliable basis on which to plan their market activities, structures and processes. In its recent report of March 2013, the International Monetary Fund (IMF) described the measures taken by the Swiss National Bank as appropriate. It recommended persevering with the floor of CHF 1.20, as it continues to view the Swiss franc as overvalued. It also observed that there were no major signs of any surge in inflation, and that an economic recovery was not yet certain.
As well as against the euro, which is the key currency for the MEM industries, there was also a slight improvement in the level of the Swiss franc against the US dollar and the Japanese yen. Both currencies appreciated by 5.7% against the Swiss franc in 2012. However, the continued strength of the franc also led to an increase in labour costs in an interÂnational comparison. This is proving an additional drag on Switzerland’s appeal as a business location. While hourly wage costs in Switzerland have traditionally been high, the last few years have also seen a rise in non-wage labour costs.
Swissmem Panorama 2013 – Production and location factors
30
Innovation ranking 2012
Innovation as the elixir of life
Switzerland
In 2012, Switzerland once again topped the rankings of innovative nations in Europe. This was confirmed by the “Innovation Union Scoreboard” of the EU Commission. Particular strengths of Switzerland include scientific publications and international patent applications.
Sweden Germany Denmark Finland Netherlands Luxembourg Belgium
In a comparison with the EU, however, the proprietary research activities of small and medium-sized companies and research collaboration between these companies are only slightly below the average.
Iceland United Kingdom Austria Ireland France EU 27 Slovenia Cyprus Estonia Norway
Research and development expenditure The MEM industries accounted for 28.5% of Switzerland's total R&D expenditure in 2008. The research carried out by the sector had a clear domestic focus. Private business R&D spending abroad amounted to roughly CHF 18 billion, of which 88% was invested in the companies’ own operations.
Italy Spain Portugal Czech Republic Serbia Greece Slovakia Hungary Croatia Malta Lithuania Poland Macedonia 0
0.1
Source: Innovation Union Scoreboard 2013
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
42% of R&D personnel working in Swissmem member companies are university graduates. The proportion of technical staff grew 27% between 2004 and 2008, in parallel with higher expenditure on experimental development (54% of R&D expenditure).
Swissmem Panorama 2013 – Production and location factors
31
Expenditure on research and development R&D investment in Switzerland in 2008* Sectors in %
Other sectors 23%
Machinery, metal, high-technology instruments 28.5%
Foodstuffs 4.5%
Total: CHF 11,979 million MEM industries total: CHF 3,713 million
Chemicals/pharma 44%
* S ource: SFSO, 2010 (data gathered ever y 4 years). The MEM industries comprise metals, mechanical engineering, and high-technology instruments, as well as information and communication technologies Private sector only
R&D personnel by sector Researchers by sector in Switzerland in 2008* Sectors in %
Other sectors 36%
Foodstuffs 7%
Total in full-time equivalents: 11,081 Overall total of R&D personnel in full-time equivalents: 39,832 * Source: SFSO/economiesuisse, 2010 (data gathered every 4 years). Specialists in planning and developing new knowledge, products and processes Private sector only
Machinery, metal, high-technology instruments 33%
Chemicals/pharma 24%
Swissmem Panorama 2013 – Production and location factors
32
Energy consumption of Swissmem members in terajoules = 280,000 kWh
Energy as a key locational factor
30 000
Swissmem member companies’ energy consumption in 2012 declined slightly year-on-year (– 1.2%). Compared to 1990, indeed, the overall energy consumption of Swissmem companies has declined by as much as 40.4%. Over the same period, the MEM industries’ exports have risen by 65%.
25 000 20 000 15 000 10 000 5000 0 90 91 92 93 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 Total
Electricity
Gas
Petroleum products
Source: Swissmem
CO2 emissions of Swissmem members in tonnes of CO2 1 000 000 800 000 600 000 400 000 200 000 0 90 91 92 93 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 Total
Petroleum products
Gas
Coal/Coke
Source: Swissmem
The CO2 emissions of MEM industry companies have likewise been on a pronounced downward trajectory in the long term. In 2012, the overall emissions of Swissmem member companies were 51.2% lower than in 1990. However, emissions did post a slight year-on-year rise in 2012 (+ 5.3%). The principal causes of this development are likely to have been the cold weather and the ongoing increase in the industry's consumption of natural gas. Compared to the previous year, Swissmem member companies consumed around 9% more gas in 2012, and as much as 23% more in a long-term comparison with 1990. A large proportion of the increase is attributable to the ongoing replacement of fuel oil by natural gas, which is more environmentally friendly. Accordingly, the consumption of fuel oil in 2012 declined by 3.7% year-on-year, and declined by as much as 88.0% compared to 1990. Electricity is the most important source of energy for the MEM industries, but also the most expensive. Electricity prices for industrial consumers in Switzerland are relatively high. In the interests of preserving the competitiveness of Switzerland as a production location, it is extremely important for future energy policy to guarantee competitive prices, a very reliable security of supply, and a high proportion of domestic production.
Swissmem Panorama 2013 – Production and location factors
33
European industrial electricity prices in 2012 CHF /kWh, medium voltage
Ireland Slovakia Switzerland Spain Italy Lithuania Latvia United Kingdom Portugal Czech Republic Luxembourg Greece Hungary EU 27 Belgium Austria Germany Slovenia Poland Romania Denmark France Netherlands Sweden Finland Bulgaria Estonia 0
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
Sources: Eurostat; SFSO
Did you know that …
Swissmem member companies have reduced their CO2 emissions by
51% since 1990.
Swissmem Panorama 2013 – Production and location factors
34
Overall Swiss strike statistics 1) Number of Max. number of workers companies involved affected 702 20 098
Approx. number of working days lost
Year 2001
Number of work disputes 3
2002
4
535
21 947
2003
9
189
8 111
6 141
2004
8
1 117
24 399
38 915
2005
5
11
338
1 392
2006
3
4
635
7 870
2007
2
571
5 083
7 083
2008
8
59
10 160
13 844
2009
3
3
159
395
2010
2
2
107
2 287
2011
7
10
1 007
2 837
Average for the whole of Switzerland 2001 to 2011
5
291
8 368
11 119
20 098 21 447
* S ource: seco; no more recent data available 1) Strikes that lasted at least one working day
Long-established social partnership
At an average of five per year, the number of labour conflicts in Switzerland is far below the international equivalent. The collective labour agreement (GAV) in the MEM industries provides for progressive working conditions, and obviates the need for individual companies to conclude separate framework agreements on an individual basis. The GAV sets out clearly defined procedures for resolving contentious issues in the event of any conflict between employers and the workforce. This social partnership, which is most pronounced at factory-floor level, has been in place for 76 years now, and has proven beneficial to employers and employees alike. The
current collective labour agreement for the MEM industries is due to expire on 30 June 2013. Negotiations for a renewal of the GAV began in autumn 2012. When viewed by numbers of companies, the MEM sector is made up primarily of micro-enterprises (businesses with fewer than 10 employees) and SMEs (10 to 250 employees). When the spotlight falls on headcount, by contrast, the medium-sized and large companies account for the lion’s share.
Swissmem Panorama 2013 – Industry sector structure
35
4 | Industry sector structure
Company size structure Company size structure in the Swiss mechanical and electrical engineering industries in 2008
by number of companies
by number of employees
Small companies 22%
Large companies 35%
Medium-sized companies 8%
Micro-enterprises 9%
Large companies 2% Small companies 20% Micro-enterprises 68%
Medium-sized companies 36%
Source: SFSO Micro-enterprises: 0 to 9 F TEs, small companies: 10 to 49 F TEs, Medium-sized companies: 50 to 250 F TEs, large companies: 250+ F TEs F TEs = Full-time equivalents
Company size structure in the MEM industries Microenterprises 2001 Metal production and processing
Small companies 2008
2001
Medium-sized companies 2008
2001
Large companies 2008
2001
Total 2008
2008
150
136
75
74
46
42
19
18
270
6 095
5 491
1 425
1 442
261
291
23
25
7 249
vices, electronic and optical products
1 339
1 318
507
537
262
283
67
74
2 212
Manufacture of electrical equipment
544
531
193
203
85
64
32
35
833
1 398
1 355
670
641
287
306
69
68
2 370
Manufacture of metal products Manufacture of data-processing de-
Mechanical engineering Manufacture of automobiles and automotive components
147
128
48
48
16
13
4
6
195
Other vehicle construction
161
162
24
28
12
10
4
7
207
9 834
9 121
2 942
2 973
969
1 009
218
233
13 336
Total
Source: SFSO
Swissmem Panorama 2013 – Industry sector structure
36
Workforce structure by gender and area of activity in %
Breakdown by gender
2009
2010
2011
2012
Female
18.1
17.6
17.6
17.7
Male
81.9
82.4
82.4
82.3
Breakdown by area of activity
2009
2010
2011
2012
Administration/finance/services
14.9
15.1
15.4
15.9
5.5
5.6
6.1
6.4
Sales/marketing Information technology
3.6
4.1
3.9
4.5
Production/assembly/maintenance
52.5
51.0
47.9
45.2
Research/development/planning
15.4
16.7
18.3
19.6
7.8
7.5
8.2
8.4
Technical sales force/training
Source: Swissmem
Did you know that ...
5%
of apprenticeship places with Swissmem companies could not be filled in 2012?
Commitment to the next generation
More than half the people employed in the MEM industries work in production, assembly and maintenance. The area that has grown most strongly compared to previous years is research, development and planning, which now accounts for 19.6% of employees. The MEM sector trains more than 20,000 apprentices, making it one of the largest training providers in Switzerland. In 2012, a total of 8,811 apprentices were being trained in Swissmem companies alone. Mechanical engineering is the biggest area for apprenticeships, offering 2,990 places. In the professions covered by Swissmem (mechanical engineering, automation, plant engineering, electronics, design engineering, MEM procurement), the number of apprentices has risen slightly despite the difficult economic environment. The number of apprenticeships rose from 17,762 to 18,449 between 2009 and 2011.
According to a survey conducted among Swissmem member companies, 58% of SME companies and 67% of larger companies have a shortage of specialist labour. This shortfall of highly skilled staff in the MEM industries is not just apparent in the area of international specialists, but at all levels. The continued fostering of dual training and further investment in education are therefore key issues for the MEM industries. Despite all this, the Swiss labour market cannot fully meet the demands of industry by itself. Ensuring freedom of movement with the EU countries is therefore crucial. Swissmem companies are not the principal professional destination of EU immigrants, just 6% of whom end up in the MEM sector. MEM companies primarily focus their foreign recruitment efforts on university graduates and individuals with a good professional training.
Swissmem Panorama 2013 – Industry sector structure
37
Trainees by occupational category Sectors in %
Business management 15%
IT 7%
Plant engineering 4%
Other 9%
Electronics 7%
Engineering design 13% Mechanical engineering 33% Automation 12%
Source: Swissmem; Trainees in Swissmem member companies
Trainees New trainees
Total
Occupation
2009
2010
2011
2011
Mechanical engineering
2 335
2 275
2 310
8 088
Automation
1 025
1 007
1 052
3 495
Engineering design
571
521
519
2 039
Electronics
569
554
574
1 961
Plant engineering
275
259
260
1 028
Business management
590
309
644
1 838
Information technology
1 727
1 689
1 737
5 977
Total
7 092
6 922
7 096
24 426
Source: FSO; numbers at all business sectors
Swissmem Panorama 2013 – The MEM industries in an international context
38
5 | The MEM industries in an international context
Swiss industries’ headcount abroad 1 400 000 1 200 000 1 000 000 800 000 600 000 400 000 200 000 0
2002
2003
Industry total
2004
2005
2006
2007
2008
2009
2010
2011
of which MEM industries
Source: SNB
Headcount of industry overall by global region Region
2009
2010
2011
share in %
513 867
510 813
513 306
37.5
43 337
46 027
48 179
2.6
Europe
557 204
556 841
561 484
40.1
North America
201 673
202 903
214 779
15.7
Central and South America
133 917
141 062
148 856
10.9
Asia
EU Rest of Europe
278 084
307 711
378 379
27.6
Africa
39 876
42 904
42 723
3.1
Oceania
23 913
21 105
23 283
1.7
1 234 667
1 272 525
1 369 503
100.0
Total
Source: SNB
Swissmem Panorama 2013 – The MEM industries in an international context
39
Headcount of foreign industrial companies in Switzerland 180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 0
2003
2004
Industry total
2005
2006
2007
2008
2009
2010
2011
of which MEM industries
Source: SNB
Increased headcount abroad
Between 2009 and 2011, companies in the MEM industries increased their headcount abroad from 473,462 to 526,992 employees (+ 11%). This increase occurred parallel to the growth in the number of full-time employees in Switzerland, which rose from 332,411 to 337,887 over the same period (+ 2%). The sharp rise in the number of jobs abroad is therefore striking in relative terms. However, there is no sign of a general reduction of headcount at the bottom line in Switzerland, despite the difficult environment. These figures support the hypothesis that increased activity abroad does not have to lead to a reduction of headcount domestically. Indeed, such a development appears more likely to strengthen Swiss locations. In 2011, the MEM industries employed 864,879 staff worldwide.
The strongest headcount increase in recent years occurred in Asia. The number of manufacturing employees has increased from 153,827 to 378,379 within 10 years, a rise of 146%. A slight increase in direct foreign investment in Switzerland was recorded once more in 2011. After a decline the previous year, headcount at foreign MEM companies active in MEM industries in Switzerland rose by 3.4% to 90,760. A multi-year comparison of headcount for all industries reveals a significant expansion in the number of people working in foreign companies in Switzerland. Between 2004 and 2011, this figure increased by 26.8% to 157,220 employees. This is a strong indicator that Switzerland remains a very appealing centre of research and industry for foreign companies as well as their Swiss counterparts.
Swissmem Panorama 2013 – The MEM industries in an international context
40
Foreign capital holdings of Swiss industry in CHF million 350 000 300 000 250 000 200 000 150 000 100 000 50 000 0
2004
2005
Industry total
2006
2007
2008
2009
2010
2011
of which MEM industries
Source: SNB
Capital holdings of total industry by global region Region EU Rest of Europe Europe
2009
2010
2011
share in %
129 930
116 592
117 934
37.5
31 418
28 885
23 937
7.6
161 348
145 477
141 871
45.1
North America
69 664
66274
85 715
27.3
Central and South America
46 390
40 686
33 162
10.6
Asia
34 699
39 067
45 494
14.5
Africa
2962
3254
2988
1.0
Oceania
1197
4802
5084
1.6
316260
299560
314 314
100.0
Total
Source: SNB
Swissmem Panorama 2013 – The MEM industries in an international context
41
Capital holdings of foreign companies in Switzerland in CHF million 125 000 100 000 75 000 50 000 25 000 0
2004
2005
Industry total
2006
2007
2008
2009
2010
2011
of which MEM industries
Source: SNB
Strong rise of direct investment in Asia
Whereas the foreign capital holdings of Swiss industry as a whole rose by 4.9% in 2011, those of the MEM industries recorded a decline of 5.9%. In 2011, the latter figure recorded a 3.5% rise, whereas the figure for Swiss industry as a whole declined. The MEM industries accounted for 28.3% of all industrial capital holdings abroad. In a multi-year comparison, Swiss industry’s investments abroad have increased sharply, and above all since 2004. The capital holdings of Swiss industry as a whole amounted to CHF 154 billion in 2011, an increase of 96% on 2004.
In Asia alone, capital holdings increased by as much as 219% over the same period, which clearly emphasizes the increasing importance of these markets for the MEM industries. The capital holdings of the industry as a whole in Asia rose by 16% between 2010 and 2011 alone. In 2011, direct foreign investment in the MEM industries in Switzerland was broadly equivalent to 2010 (+ 0.4%). There had been a decline in the previous year as a result of Switzerland’s diminished appeal as a production location following the strong appreciation of the franc. Foreign capital investment in Swiss industrial companies has risen by 127% since 2004.
Swissmem Panorama 2013 – The MEM industries in an international context
42
Key machinery-exporting countries 2011 Country
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Rank 7
Rank 8
Rank 9
Rank 10
D
JPN
USA
CHINA
I
F
KOR
UK
NL
CH
Rank 6
Rank 7
Rank 8
Rank 9
Rank 10
Source: VDMA, Mechanical engineering excluding office and information technology
Rankings in selected product areas 2011 Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Paper processing machinery
D
I
CH
CHN
F
USA
JPN
NL
TPE
GB
Packaging machinery
D
I
USA
CH
CHN
F
S
JPN
NL
E
Machine tools
JPN
D
I
TPE
CH
USA
CHN
KOR
E
A
Textile machinery
D
JPN
I
CHN
CH
F
TPE
USA
KOR
CZ
Food processing machinery
D
I
NL
USA
CH
CHN
DEN
F
JPN
GB
Scales
CHN
Prinnting and paper technology D
D
JPN
GB
USA
CH
NL
I
DEN
MEX
JPN
USA
I
GB
ISR
CH
CHN
F
NL
Turbines
USA
D
JPN
I
GB
CHN
F
CH
MEX
NL
Precision tools
D
JPN
CHN
KOR
USA
I
NL
CH
A
SIN
Compressors/vacuum tech.
D
USA
JPN
I
CHN
B-L
F
CH
GB
NL
Plastics/rubber machinery
D
JPN
CHN
I
A
USA
TPE
F
CAN
CH
Source: VDMA
Did you know that ...
Switzerland is ranked
no. 2
in terms of machinery exports per capita?
Swissmem Panorama 2013 – The MEM industries in an international context
43
Machinery exports per capita 2011 in 1,000 euros
Singapore Switzerland Luxembourg Austria Denmark Belgium Germany Netherlands Sweden Finland Italy Slovenia Czech Republic Japan Norway Slovakia South Korea Estonia Taiwan 0 0.5 1.0 1.5 2.0 2.5
3.0
3.5
4.0
Source: VDMA
Switzerland – a leading machinery exporter
When viewed in absolute figures, Switzerland occupied 10 th place in a 2011 ranking of the most important machineryexporting countries of the world. When viewed on a per capita basis, however, Switzerland ranks second behind Singapore. In many product areas, Swiss companies are among the leading global providers. A combination of innovation and high product quality enables Swiss companies to compete successfully at a global level. As a further development, the importance of the service business has increased continuously over the last few years.
In particular, small and medium-sized companies tend to focus on a few niche markets while at the same time providing a strong level of service. Stable political and economic para meters, a first-rate infrastructure, the availability of specialist labour, and the high quality of tertiary education are all factors that explain why various multinational companies continue to base their group activities in Switzerland. Despite the difficult currency environment, a flexible labour market and an innovation-friendly environment represent further factors that should allow the companies in the MEM industries to continue to manufacture successfully in Switzerland and export their products to the world markets.
Swissmem Pfingstweidstrasse 102, P.O. Box 8037 Zurich Tel. +41 (0)44 384 41 11 Fax +41 (0)44 384 42 42 www.swissmem.ch info@swissmem.ch Swissmem Vocational Training Brühlbergstrasse 4 8400 Winterthur Tel. +41 (0)52 260 55 00 Fax +41 (0)52 260 55 09 berufsbildung@swissmem.ch www.swissmem-berufsbildung.ch Swissmem Executive Training School Brühlbergstrasse 4 8400 Winterthur Tel. +41 (0)52 260 54 54 Fax +41 (0)52 260 54 00 kaderschule@swissmem.ch www.swissmem-kaderschule.ch