Swiss Industrials: Financial resilience in the face of global headwinds

The tense geopolitical situation has become the new world order. Since 7 August 2025, US import tariffs of up to 39% have also been in place on selected industrial goods. For Swiss engineering, automation and high-tech companies, this means that export margins are being hit hard, while at the same time the strong Swiss franc is further reducing revenues in target markets. Added to this are weaker demand from the EU, high energy prices, and a deterioration in the creditworthiness of many SMEs. Banks are responding with more restrictive lending and tighter credit terms, which is further reducing the flexibility for investment.

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Key Takeaways

• Liquidity under pressure: Declining margins and longer payment terms from clients are increasing capital requirements.
• Tighter lending: Banks are scrutinizing creditworthiness and covenants more critically, especially for export-oriented companies.
• Investment backlog looms: Uncertainty is slowing projects in automation, digitalization, and the energy transition.
• Private capital sources are gaining in importance: In addition to bank financing, private debt, sale-and-lease-back, and strategic partnerships are becoming more relevant.
• Targeted preparation is crucial: Companies that examine financing alternatives and optimize collateral can take advantage of opportunities in volatile markets.

Burden factors for Swiss Industrials

The current situation for Swiss Industrials is characterized by several simultaneous burdens. The introduction of high US tariffs and the persistent strength of the Swiss franc are reducing export margins and limiting the funds available for investment. Geopolitical tensions are causing uncertainty in supply chains and commodity markets, making it difficult to calculate complex projects. At the same time, high energy prices are weighing on the cost base and reducing the potential for innovation. Despite interest rate cuts, many lenders remain cautious and are demanding risk premiums, especially from companies that are heavily export-oriented. For capital-intensive industries such as mechanical engineering, automation, and energy technology, this means a noticeable restriction of their room for maneuver.

Resilience through financial leadership skills

1. Timely scenario planning: Simulate market, currency, and interest rate developments in order to be able to react to changes.
2. Use alternative sources of capital: Consider private debt, asset-based lending, or vendor loans to supplement bank credits.
3. Sharpen liquidity management: Optimize working capital and make targeted use of factoring.
4. Make selective use of subsidies: Take full advantage of programs for digitalization, energy efficiency, and transformation.
5. Prioritize investments: Give preference to projects with a high ROI and postpone others.

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Conclusion
For Swiss Industrials, and SMEs in particular, this year marks a period of setting the course for the future. It is not only technological expertise, but above all strategic financial and entrepreneurial leadership that will determine who can succeed in an environment characterized by tariffs, geopolitical risks, and margin pressure. Companies that keep their capital structure flexible, rely on alternative financing channels, and prioritize investments in a targeted manner will remain capable of acting even in the face of global headwinds — and will be able to invest in future technologies such as automation, AI, sustainable production, and forward-looking acquisitions at the right moment.

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More information on Industrials.

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