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It is a toxic cocktail that is causing lack of orders in the machinery, electrical and metal (MEM) industries. This is reported by Jürg Marti (57). The Swissmechanic association director had 243 MEM industry SMEs surveyed. Most companies look black for the next few months. Even well into next year. The crown pandemic keeps Switzerland firmly in check.
Reasons: MEM clients’ capacities are still below their full capacity, uncertainty about the future course of the pandemic is high, companies need liquidity and, as many work for export, the strong franc still hurts.
82 percent suffer from lost orders
At the same time, employees are absent due to illness, quarantine and childcare, Marti reports. Supply chains are often disrupted. “However, the lack of orders, suffered by 82 percent of those surveyed, has an even greater impact,” Marti said of the survey results released today.
The Swissmechanics Business Climate Index was solid red in the third quarter. The downward trend in incoming orders and sales slowed slightly.
According to the industry director, the industry is far from being over the top. Short-term work and hiring freezes were still prevalent in 70 percent of companies. Nearly a third of those surveyed said they couldn’t avoid layoffs. Therefore, it is important to avoid a second blockade at the national level with all possible forces.
Protection measures remain in force
As long as the second wave is rolling in, society protects itself with masks, washing its hands, keeping its distance, and staying home.
According to Swissmechanic, effective protection measures for companies and their employees are short-term workers’ compensation, bridging loans and financial hardship regulations.
Society and the economy will have to hold on to these protective mechanisms for a long time. (aurochs)
