Switzerland is an industrial nation – and it must remain so!

Switzerland is an industrial nation – and it must remain so!
Switzerland is an industrial nation – and it must remain so!

The typical economic development of a country begins with industrialization. This process has been observed for three decades in China, where industrial production is growing at breakneck speed and employment in agriculture is declining. The stronger the economic development, the more the importance of industry declines, because services are constantly gaining importance. Modern economies achieve most of their value creation in the services sector.

What about Switzerland? It has remained an industrial nation despite economic development! As in Germany, Swiss industry generates around a fifth of the gross domestic product. For comparison, France’s industrial share now represents only half that of Switzerland, despite (or undoubtedly because of) its activism in industrial policy.

The way in which Swiss industry has overcome economic difficulties in recent years is remarkable: geopolitical tensions and conflicts as well as the strong franc are weighing on exports. The high price of land, the high level of wages, the high cost of energy, but also bureaucratic obstacles make production more expensive. The success of Swiss industry is therefore not self-evident. It is only thanks to its high-quality products, numerous innovations and its ability to constantly renew itself that the industry can survive and remain prosperous in our country characterized by high costs.

To be able to maintain value creation in Switzerland, however, the industry needs good framework conditions: access to foreign labor and the flexibility of the labor market must be preserved, the energy supply must be insured at reasonable prices, and the levies and tax burden must not be increased.

The high level of industrial added value must be generated tirelessly, month after month, year after year. Indeed, products are continually improved, the patent on some of them expires, allowing low-cost imitators to enter the market, or entirely new products are invented and developed. The added value generated by current products therefore decreases over time. So that Swiss industry can continue to produce competitive products in the future, it must constantly renew itself. This is only possible if it has ample room for entrepreneurial maneuver.

#Swiss

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