MEM industries: the strong franc is making its mark

Sales in the Swiss mechanical and electrical engineering industries (MEM industries) fell by 8.1% year-on-year in the first quarter of 2015. New orders were particularly hard hit, declining by 17.1%. Even more of a burden on the MEM companies is the huge pressure on their margins: almost two thirds of them are expecting margins to drop by at least 4 percentage points. Consequently, 31% of MEM companies are assuming an operating loss for 2015. This confirms the fears that the renewed strength of the franc will leave visible marks on the MEM sector. Sadly, as yet there have been almost no indications from government that it intends to support Swiss industry with improved framework conditions. Swissmem is calling on policymakers to finally start taking the concerns of industrial companies and associations seriously.