Machine industry exports jump in 2006

The packaging industry was one sector to experience a growth in exports (David Adair, ex-press)

The umbrella organisation of the mechanical and electrical engineering industries has reported a good year in 2006, with a rise in both exports and sales.

At its annual results news conference, Swissmem said exports had risen 14 per cent to around SFr70 billion ($57 billion). Sales last year increased by 10.9 per cent.

The organisation expressed confidence in the current year, given the good economic outlook in Switzerland. But it warned that an increase in the value of the Swiss franc could negatively influence orders from abroad.

“Swiss companies also reaped the benefits of having decisively improved their competitiveness by means of far-reaching restructuring in recent years,” it added in a statement.

According to Swissmem, there was growth in all key markets: exports to Asia were up 14.2 per cent, while those to the European Union and the United States increased by 13 per cent and 8.3 per cent, respectively.

The firms which form part of Swissmem experienced a 20 per cent growth in orders last year, with those from abroad increasing 22 per cent and domestic orders up ten per cent.

The number of workers engaged in the sector – the largest branch of industry – increased by 2.9 per cent to 318,499.

Skills shortage

But a survey conducted among Swissmem’s members has indicated a continuing shortage of engineers. In February 2007 the shortfall amounted to 1,500 engineers and 69 per cent of companies had vacancies, compared with 39 per cent in 2003.

The survey highlighted a particular gap in supply and demand for workers in the fields of machinery and electrical engineering.

Firms will increasingly look abroad to fill positions from abroad unless Switzerland can produce more skilled workers, Swissmem president Johann Schneider-Ammann told swissinfo.

“The number of engineers coming out of Swiss universities has increased year by year, but the demand from companies has risen tremendously and they have been forced to plug the gap by hiring engineers from international schools,” he said.

“Every time you hire an engineer from Shanghai, Germany or anywhere else you create long-term work places for people abroad. Our main goal is to make the Switzerland workforce as strong as possible.”

One way of doing that is to provide a better all-round education for engineers that would make the subject more attractive to students, according to Martin Huber, chairman of engineering group Georg Fischer.

“It is highly important to offer attractive education not just for scientists but also for hands-on engineers,” he told swissinfo.

“We want to continue to create new technologies but we must also sponsor and develop hands-on engineers who can develop these products.”

swissinfo, Matthew Allen in Zurich

In brief

Swissmem represents the interests of almost 1,000 member companies in the engineering, metal and electronics sector.

This industrial sector generates more exports than pharmaceutical and chemical companies.

The MEM industries occupy a key position in the Swiss economy with around 309,000 employees.

Key facts

The Swissmem employment survey compared responses to the same questions put to members in 2003:
Half of respondents this year said it was very difficult to fill positions, compared to just over a fifth in 2003.
61% expect to have an increasing need for engineers in the next three years, compared with 40% in 2003.
69% of surveyed firms have vacant positions, compared with 39% four years ago.