SMEs in the MEM industries remain under pressure
Keystone-SDA
Almost three quarters of small and medium-sized enterprises (SMEs) in the machinery, electrical equipment and metals (MEM) industry consider their current business situation to be unfavourable. They are weighed down by weak demand, the strong franc and uncertainty.
Swissmechanic’s business climate index for SMEs in the MEM industries remained clearly in the red in April, at around -30 points, the technology industry’s umbrella association reported on Wednesday in its regular survey. The situation has persisted since the end of 2023.
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The lack of orders remains the main concern for the majority of companies (60%). This is followed by pressure from exchange rate fluctuations (41%) and rising energy prices (23%), two challenges that have become significantly more important for SMEs since January 2026. The shortage of skilled labour only comes fourth (22%).
Many businesses are also experiencing increasing pressure on their margins. In the first quarter of 2026, around four out of ten SMEs recorded a fall in their EBIT (earnings before interest and taxes) margin. Despite the difficult situation, 18% of them are holding on to their workforce through short-time working and targeted efficiency measures.
The investment situation also remains tight. Around 24% of companies say they are unable to invest because of financial constraints. The main reason is a lack of equity capital. At the same time, the majority of companies plan to maintain their production capacity at a constant level.
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However, the first signs of stabilisation are emerging. Exports from the MEM industries are up for the third consecutive quarter, and in March the purchasing managers’ index (PMI) exceeded the growth threshold for the first time since the end of 2022. However, there is still no sign of a sustainable recovery.
Adapted from French by AI/ac
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