Effects of Corona-crisis – industry-feared crash and receivables provides over a third of the Swiss machine industry expects in the current years with a financial loss. Swissmem is calling for the extension of emergency measures. 1 Kommentar1Eine Monte urine works in the factory of an automotive supplier to a gearbox for trucks. Photo: Felix Kästle/Keystone

The corona crisis, many companies in the machinery, electrical and metal industry (MEM-industry) breaks into misery. Over a third of companies (38 per cent) feared in the current year, an operating loss. “A further 34 per cent of businesses expect an operating profit margin (EBIT) of between zero and five percent,” said the industry Association Swissmem on Tuesday in a Communiqué. This was an unsatisfactory value, the invest it this company made it impossible for the business in the future. “Thus 72 percent of the MEM companies are in the short to medium term existence-threatening Situation.”

the negative effects of The corona of a pandemic would hit, the MEM industries in the second and third quarters full. Almost half of the MEM-companies (48 percent) had suffered due to regulatory closures, cancellations of orders. “These revenues and thus the margins will disappear in the coming months,” more wrote, Swissmem.

Even more disturbing, the level of the purchasing managers ‘ index PMI, which fell in April, almost worldwide, to the lowest level since the financial and economic crisis in 2009. “The new orders decline now,” said the Association.

The export industry needs more space and support for innovation.

Hans Hess, President of Swissmem

in view of this worrying situation, Swissmem President Hans Hess called for a better framework: “We must immediately take countermeasures. Only a rapid, controlled exit from the Lockdown, and a sustainable strengthening of the competitiveness of the companies, we can limit the extent of the break-in.”

The MEM-industry, exporting almost 80 percent of their goods. “Therefore, it is crucial that even in their sales markets, the rapid exit from the Lockdown takes place. An economic recovery program, which can achieve inherent only in the internal market effect, would be useless,” said the industry Association.

The history shows that economic stimulus programs would have to work late or in the wrong place. “A lot more, the export industry is more entrepreneurial room for manoeuvre and support the innovation needs, so you can quickly find out of the crisis.”

Again, Swissmem called for the elimination of industrial tariffs. This alone would bring the MEM-industry in an annual cost savings of around 125 million francs, as well as significant reductions in the administrative burden. The Parliament should decide on this waiver in the summer session, dam so that they could enter into force early next year. Moreover, there is a need for new free trade agreements, such as with the Mercosur countries of Brazil, Argentina, Paraguay and Uruguay.

in addition, Swissmem calls for the extension of emergency measures. The deadline for the submission of applications for Corona-bridging loans should be extended until the end of the year. Also, the period for course work, compensation would have to be extended to 18 months, called for the industry Association.

Already in 2019 on the descent

The Corona-epidemic, accelerated the decline of the industry solid, had been used in the past year. The order intake for the MEM industries fell by 2019 compared to the previous year of 10.6 percent. Also, sales declined by 4.5 percent compared to the previous year.

the main reason for the cancer response to the economic downturn, according to Swissmem in the most important sales markets due to the trade conflicts and the crisis in the auto industry. In addition, the appreciation of the Swiss franc versus the Euro negatively impacted the competitiveness of the local companies in the important areas of the EU.

(SDA /aru)

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