Facing Strong Franc, Bernina Considers Shifting Production to Thailand

For over 130 years, Bernina has stood as the unshakeable gold standard of Swiss precision engineering, producing high-end sewing machines from its historic headquarters in Steckborn since 1893. Today, that legacy hangs by a thread. In a move that sends shockwaves through the Canton of Thurgau, the iconic manufacturer is actively considering relocating its core production to Thailand. This is not merely a logistical adjustment; it is a potential dismantling of a century-old industrial identity.

The company, synonymous with Swiss quality, has officially notified its workforce that the economic ground has shifted beneath them. While Bernina has operated a facility in Thailand since 1990 for lower-tier models, this new proposal strikes at the heart of its premium manufacturing operations. The message is stark and undeniable: tradition alone cannot pay the bills in a globalized economy that is increasingly hostile to Swiss exports. As the consultation process begins, the question looms large—is this the beginning of the end for "Made in Switzerland" at Bernina?

Bernina is currently grappling with a lethal economic double-whammy that is suffocating its margins. The primary culprit is a staggering 39% US tariff barrier that has slammed into the company's bottom line. Combined with the relentless strength of the Swiss franc against the US dollar, the cost of doing business from Thurgau has skyrocketed to unsustainable levels. This is not a slow decline; it is an immediate financial crisis that demands drastic action.

The manufacturer has been forced to assemble a dedicated task force to navigate this treacherous landscape, but the headwinds are fierce. While Swiss industrial roots are famously resilient, the math is becoming impossible to ignore. Producing in francs while selling in dollars—burdened by punitive tariffs—is a recipe for shrinking profits. Bernina's plight serves as a flashing red warning light for the entire Swiss export sector: when currency strength meets protectionist trade policies, even the most established giants can be brought to their knees.

Bernina isn't just selling to America; it is surviving because of it. A massive 70% of the group's total revenue flows directly from the United States, creating a dangerous dependency that leaves the company exposed to every whim of US trade policy. This over-reliance on a single market has turned into a critical vulnerability. When the US market sneezes, Bernina catches pneumonia.

The impact over the last six months has been particularly brutal. To combat the tariff hikes, Bernina was forced to implement significant price increases for American consumers—a risky gamble that could dampen demand in their most vital territory. The company admits that the long-term fallout of these price hikes is "difficult to predict," creating a climate of uncertainty. By tethering its fate so tightly to the US economy, Bernina has left itself with little maneuvering room when transatlantic trade relations sour.

The human cost of this potential restructuring is becoming painfully clear. Up to 40 employees at the Steckborn headquarters are now staring down the barrel of redundancy. While this represents a fraction of the 1,200-strong global workforce, it decimates the local assembly team and follows an ominous precedent set just last autumn, when seven assembly staff were let go under similar pressures. The trend is unmistakable: the workforce in Thurgau is shrinking.

A consultation process is now ticking down until February 11, leaving workers in a state of agonizing limbo. These are not just statistics; they are skilled craftspeople whose livelihoods are being sacrificed on the altar of global efficiency. If this shift to Thailand proceeds, it marks a significant severance of the bond between the community of Steckborn and the brand that has defined it for generations. As Bernina looks East to save its bottom line, the local workforce is left to wonder who will be next.