Swiss firms react to tariffs with automation and local production

The US tariffs jeopardise margins, disrupt supply chains and put a strain on customer relationships, EY said. Keystone-SDA

According to a survey, Swiss companies have taken several measures in response to the recently announced tariffs by the United States. These include increasing efficiency and automation.

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In a survey conducted by strategy consultants EY Parthenon, 48% of the CEOs surveyed are planning specific measures in these areas. At the same time, close to three-quarters stated that they would increasingly produce goods locally in future or organise their supply chains more regionally, according to a press release issued by EY on Tuesday. In all 1,200 CEOs worldwide took part in the survey, including 50 from Switzerland.

The background to the measures is the significant increase in customs duties on Swiss imports to 39% since the beginning of August. This development jeopardises margins, disrupts supply chains and puts a strain on customer relationships, explained Stefan Rösch-Rütsche, country managing partner of EY Switzerland, quoted in the press release. Companies therefore need to act quickly and develop customised solutions.

Desire for expansion

In addition to customs duties, geopolitical uncertainty remains the dominant risk for local companies. In Switzerland, 52% of CEOs in Switzerland named geopolitical tensions as the greatest threat to their business, compared to just 28% worldwide. Macroeconomic uncertainties were also a concern for 42% of respondents.

Despite the tense situation, Swiss business leaders are still expansionary. Forty percent are planning at least one merger or takeover within the next 12 months, while 76% want to enter into strategic alliances or joint ventures.

The majority of respondents believe that geopolitical and economic uncertainty will continue for several years: 38% expect it to last at least three to five years, which is significantly more than the global average of 17%.

Translated from German with DeepL/gw

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