The Swiss tech industry experienced a challenging and largely stagnant year in 2025. The sector, which includes mechanical engineering, electrical engineering, and metal industries, was heavily impacted by high US tariffs and weak demand in export markets. Sales declined by 0.3%, while goods exports remained almost unchanged (+0.7%).
However, the second half of the year brought the first signs of recovery. Order intake increased slightly (+1.4%), and capacity utilization rose after a prolonged decline. These developments offer cautious optimism, although the sector still operates below its long-term average.
The European Union once again proved to be a key stabilizing market. While exports to the United States fell by 7.6% and to Asia by 2.9%, exports to the EU increased by 3.5%, helping to offset losses elsewhere.
The outlook for 2026 remains mixed. Business sentiment has improved slightly, and some companies expect an increase in orders. Nevertheless, significant risks persist, including geopolitical uncertainty, unpredictable US trade policy, a strong Swiss franc, and growing isolationist tendencies within the EU.
Despite these challenges, Switzerland continues to be an attractive business location. According to a Swissmem survey, 88% of companies invested in Switzerland over the past three years, and 81% plan to continue investing. Key factors include the availability of skilled labor, a flexible labor market, and favorable regulatory conditions.
Maintaining these competitive advantages will be crucial for the future resilience and growth of the Swiss tech industry.