The companies in the Swiss mechanical and electrical engineering industries (MEM industries) recorded a slight increase in sales of 2.1 percent in the first quarter of 2012, but experienced a sharp year-on-year decline in new orders of 16.8 percent over the same period. The persistent pressure on margins and unsettled mood in key markets mean that companies will have to continue to show a high level of adaptability. The necessary increase in competitiveness through innovation must not be compromised by new cost burdens.