September 12, 2018
Switzerland Industry Study

Swiss Medical Technology Creates 4,000 New Jobs in Two Years

The Swiss medical technology sector employees around 58,500 individuals – 7.3% more than in 2015. In 2017, it generated sales of 15.8 billion Swiss francs – 1.7 billion more than two years ago. This achieved sales growth is well above that of the entire Swiss GDP. Medtech exports account for 5.1% of the nation's total exports. The latest figures emphasise the relevance of medical technology for the entire Swiss economy. These figures and other information arise from the 6th industry study on the Swiss medical technology industry (SMTI 2018), which was carried out by the Swiss Medtech Association in collaboration with the Helbling Group.

The SMTI 2018 results once again confirm the robustness and flexibility of the domestic medtech industry. Over the past few years, companies have actively responded to the increasing collapse in margins and the overvalued Swiss franc by implementing programmes that they can profit from today. Despite increasingly fierce international competition, growing pressure related to costs and regulations, the industry continues to be agile, innovative, competitive, and contribute significantly to the Swiss economy:

• Every 100th job is in the medtech industry
With around 58,500 employees, medtech jobs represent 1.1% of the Swiss workforce, slightly more than every 100th job in the country. Employees numbers have risen (on average) by 2.6% per year since 2012 - and by as much as 4.6% in 2017. The industry has created 13,000 new jobs since the first SMTI study was carried out in 2008.

• Sales account for 2.3% of the entire Swiss GDP
The turnover generated by the roughly 1,400 medtech companies in Switzerland amounts to 15.8 billion Swiss francs. This corresponds to 2.3% of the total gross domestic product (GDP). The 2017 sales growth of 6.4% considerably exceeds the average Swiss GDP growth of 1.1%.

• Switzerland is a world class export country
In global comparison, Switzerland has further consolidated its key position as an export nation. At 11.3 billion, exports have increased by 0.7 billion CHF since 2015, and today constitute 5.1% of total sales abroad. Aside from the domestic market, the most important target markets remain the USA, followed by Germany.

Switzerland remains an important production location
Switzerland offers high diversity and density - with a network of 1,400 manufacturers, suppliers, service providers and dealers. Producing companies are distributed throughout the country, reaching even into the Alpine valleys. Medtech enterprises cover the entire value chain. Switzerland is characterised by a close-knit grid of technology companies - with suppliers and service providers providing specialised and in-depth knowledge. Switzerland offers a unique medtech cluster with a high proportion of research, development and production. Well-represented medical fields of application for this extremely diverse industry include hospital equipment and consumable items, rehabilitation, in-vitro diagnostics, orthopaedics and dental care products.

⅔ of companies are planning investments in Switzerland
The companies surveyed cited the presence of specific medtech know-how, high levels of productivity, the liberal labour market and the stable economic environment as decisive advantages of the Swiss workplace. Two-thirds plan to invest in the German market in the next two years. In addition to investing in Switzerland, medtech manufacturers are increasingly turning to foreign countries to benefit from regional conditions in other locations - these include lower costs, specialist personnel and the proximity to customers.

EU regulations pose the biggest challenge
The overall solid performance and positive development trend is helping the medtech industry meet growing regulatory requirements. Survey respondents identified the increasing obligations in connection with quality, documentation and product approvals as the biggest challenge - in particular, the introduction of new EU regulations for medical devices and in-vitro diagnostics (MDR / IVDR). They also cite difficulties with recruiting specialized personnel as a major further issue.

Better exploit the potential of digitisation
Companies see enormous potential to optimise digitalisation in order to improve effective interaction with customers and increase production efficiency in the future.
Improve access to skilled workers and promote innovation
Despite these challenges, the companies consulted are optimistic about the future: average revenue growth expectations for 2018 are reported to be around 6%. However, respondents require better access to skilled workers, as well as stronger and more targeted funding for research and innovation to ensure the strong position of the Swiss medtech industry in the future.

Key figures of the Swiss medtech industry
• Around 1,400 companies - comprised of 25% manufacturers, 35% suppliers, 15% dealers and 25% service providers. 93% have fewer than 250 staff
• 58,500 employees with an average labour productivity of 270,000 francs per individual
• Sales of approx. CHF 15.8 billion - representing 2.3% of Switzerland's total GDP
• Export volume of CHF 11.3 billion - the largest export markets are the USA (CHF 3.0 billion) and Germany (CHF 2.2 billion)
• Trade surplus of CHF 5.9 billion - contributing approx. 13.5% of the Swiss national total.

The numbers above refer to 2017.

About the SMTI Study
The 6th edition of the Swiss Medical Technology Industry (SMTI) Sector Study was once again made possible thanks to the close collaboration between Swiss Medtech and the Helbling Group, as well as the support of an expert advisory board. The industry report has been produced every two years since 2008 and is based on the results of a wide-ranging survey of manufacturers, suppliers, specialised service providers and retailers throughout the country. With 421 companies represented in the Swiss Medical Technology Industry (SMTI) Sector Study 2018, participation is higher than ever before. The study presents the strengths, weaknesses and trends that characterise this industry and its workplace in Switzerland. The report provides an overview of current challenges, areas of activity as well as future development goals.

Source: Swiss Medtech