Sentiment among SMEs in the MEM industries remains low

Swissmechanic describes the situation as precarious due to the US tariffs. The SME MEM business climate index of the industry association Swissmechanic stood at -32 points in July 2025, which is still a shade below the level at the end of April (-30 points).

This is the ninth consecutive quarter with a negative sign. Just under 40% of the companies surveyed recently reported lower incoming orders, sales and margins, the association wrote in a press release on Wednesday.

The erosion of margins has even continued for twelve quarters, making investments impossible. Even if only a small proportion of SMEs are directly active on the US market, many companies are still feeling the effects of the 39% tariffs on goods from Switzerland that have been in force for around three weeks as suppliers to large and export-oriented companies.

Continued shortage of skilled workers

The strong franc and the continuing shortage of skilled workers are also exacerbating the situation. Around 30 percent of companies are complaining about a lack of qualified staff.

According to the umbrella organization, the outlook for the fourth quarter is subdued. The majority of companies are not expecting a rapid recovery in turnover, incoming orders and margins. Capacity utilization remains below the long-term average despite slight improvements.

Swissmechanic reiterates the demands made to politicians earlier in August and calls for "rapid and targeted measures that facilitate investment and promote innovation". This should enable companies not only to survive, but also to grow.