>SHOP

keep my inbox inspiring

Sign up to our monthly newsletter for exclusive news and trends

Follow us on all channels

Start following us for more content, inspiration, news, trends and more

Watchmaking’s suppliers plan for the future
Economy

Watchmaking’s suppliers plan for the future

Thursday, 11 June 2015
By Thierry Brandt
close
Thierry Brandt

Read More

CLOSE
5 min read

The 14th trade fair for the watch, jewellery, microtechnology and medtech industries (EPHJ-EPMT-SMT) took place in Geneva earlier this month. None of the 867 exhibitors, the same number as last year, were put off attending by the strong Swiss franc. Some of the participants share their view.

To say that the unpegging of the Swiss franc dealt a blow to the country’s industry would be an understatement. Since January 2015, there has been talk of little else. What, then, is the situation six months after the Swiss national bank’s decision? While no single opinion prevails as to how industry is now faring, those in the front line depict a situation that remains tense, even if there is no real talk of a “crisis”. Many, such as Michel Probst, councillor and head of the department of economic affairs and cooperation for the canton of Jura, prefer to speak of a “slowdown” instead. Nothing to do with 2009. “Uncertainty” and “lack of visibility” are the other dominant sentiments among the people we questioned. Still, while industry bosses may feel there is cause for concern, it’s far from panic stations. Here’s what they have to say.

Olivier Saenger, co-founder of EPHJ-EPMT-SMT

“There were no cancellations among exhibitors following the Swiss national bank’s decision. Of course these are difficult times for the sector, and some businesses are feeling the strain more than others. I certainly don’t intend to minimise the problems they are facing but I do believe that for the most part they can be overcome. In a challenging climate such as today’s, the need for this kind of trade fair is stronger than ever. Companies must demonstrate even greater innovation and creativity, and let their clients know. What can I say three days into the event? Well it won’t be a record year for our exhibitors, but the people I’m meeting are generally satisfied and doing good business.”

Even if the context is somewhat strained, I don't think we can really call it an economic crisis.
Michel Probst
Michel Probst, councillor and head of the department of economic affairs and cooperation for the canton of Jura

“The state of the economy in the Jura? Quite frankly, even if the context is somewhat strained, I don’t think we can really call it an economic crisis, hence why I preferred to use the words “slowdown” and “uncertainty” in my speech. Obviously I meet a lot of company bosses, and if I had to sum up their views I’d say the situation is somewhere between “not so bad” and “tougher”. At the present time, we hear more about orders being postponed than cancelled. We’ll see what happens in the second half of the year. On the employment front, I see no reason to be unduly alarmed. Yes we have received several dozen requests to move to short-time working, but not all of them will be implemented. The situation today is nothing like what came about following the subprime crisis.”

Guy Ballif, sales director at Bumotec, a machine tools manufacturer in Sâles, in the canton of Fribourg

“We haven’t entered the critical zone yet. We make big machines so we’re still living on last year’s orders. In our line of business, there’s an eight-month gap. If we are affected, which we could well be, we’ll know about it in the autumn. Then it’ll be a question of degree. With or without the national bank’s decision, we were already more expensive than our European competitors. The added value of our products and the quality of the service we give our customers have always made the difference. So we’ll just do more! We also took immediate measures: we buy our parts from European rather than Swiss suppliers; we’ve asked our staff to temporarily work an extra two hours a week for the same wages, and we are doing all we can to reduce our margins.”

Richard Vaucher, owner and CEO of VOH, manufacturer of production, testing and measurement equipment in Courtelary, in the Bernese Jura

I see 2015 as being a modest year, a year of transition. We won’t be breaking any records but we have no cause for concern either. The price of our products rarely exceeds CHF 50,000 – we’re not talking about heavy machinery – hence our customers are less likely to hesitate over this type of investment. We haven’t taken any particular measures within the company. We’re working even harder, that’s all. We’re putting even more resources into innovation; we’re analysing our customers’ needs even more closely, and giving them even more help in defining their projects. Added value is what makes the difference in Switzerland.”

We're like liftboys. We spend our time going up and down.
Jean-Daniel Dubois
Jean-Daniel Dubois, CEO of Vaucher Manufacture, movement manufacturer in Fleurier, in the canton of Neuchâtel

“As you know, we have the backing of the Sandoz Foundation and shareholders such as Parmigiani and La Montre Hermès who look to the future and develop long-term strategies which favour quality products, highly skilled professions and training. For this reason we needn’t worry too much about this being a more difficult year. One only need cast one’s mind back to know that this has always been the way in watchmaking. We’re like liftboys. We spend our time going up and down. All that matters is that we don’t go any further down than the lobby! Because we have slightly less work at the present time, we are encouraging staff to use up their overtime and holidays. In truth, I’m more concerned about 2016 than 2015. We need to be taking decisions now, and I do feel our partners are slightly hesitant.”

André Saunier, owner and CEO of AJS Production, watch parts manufacturer in Porrentruy, in the Canton of Jura

“It’s hard for me to give a general trend for 2015, but I do think we’ll get through the year without any great difficulties. We have all kinds of customer, including ones whose business is thriving. The thing that will save us, not just this year but in the future, is innovation. I’m fortunate to have my son Anthony in the business, together with three highly skilled engineers. They are constantly inventing new things, finding new solutions, coming up with more rational and therefore more cost-effective production methods. This is what sets us apart. We’re also lucky that in the Jura we can propose slightly more competitive prices than in other cantons, which is an asset in the current climate.”

Back to Top