Swiss medtech industry warns that its competitive edge is fading

Swiss medtech generated a record CHF 26 billion in turnover in 2025, yet companies are cutting back on the investment and hiring that sustain the sector at home. Around 1,400 firms operate across Switzerland, producing dental implants, insulin pens, artificial hip joints, pacemakers and diagnostic devices. Together they employ just under 72,000 people and supply hospitals, doctors’ practices and laboratories with equipment that is central to daily healthcare.

The industry remains one of Switzerland’s strongest export pillars. It produced a trade surplus of more than CHF 5 billion last year, with the European Union as its largest market and the United States in second place. Swiss Medtech says turnover has grown twice as fast as the Swiss economy over the past two years.

The warning concerns what comes next. More than half of the companies surveyed by the industry association said Switzerland’s attractiveness as a business location had deteriorated over five years. Recent net job creation fell to around 200, compared with a ten year average of about 1,500. The figures suggest that strong sales abroad are no longer translating into comparable momentum inside Switzerland.

Only around 200 net new jobs were created in the latest period, against a ten year average of roughly 1,500. Swiss Medtech director Adrian Hunn sees the employment figures as an early signal of weaker confidence. The association’s latest report also found that 43% of companies had no investment plans, the highest proportion since the survey began.

For manufacturers, investment decisions cover production lines, research facilities, regulatory work and skilled staff. When companies postpone those decisions, the effect can spread through regional supply chains and the labour market. Switzerland’s medtech sector includes large international manufacturers as well as specialised small and medium sized enterprises that provide components, engineering and testing services.

The figures do not indicate that the sector has stopped growing. Turnover has continued to rise, and the industry retains a large export base. They show that firms are becoming more cautious about expanding their Swiss footprint. Hunn described the investment trend as worrying and said investment would determine the jobs available in the future.

That caution is visible in Winterthur, where Zimmer Biomet announced plans to eliminate up to 580 of the 730 jobs at its site during a production restructuring. Swiss Medtech president Damian Müller called the announcement extremely worrying.

The strong Swiss franc, high labour costs and trade barriers are squeezing manufacturers that depend on international sales. A stronger franc raises the price of Swiss products in foreign markets and can reduce the value of overseas revenue when it is converted back into Swiss francs. Labour costs add pressure in a sector that depends on engineers, technicians, quality specialists and regulatory experts.

Companies also face a difficult international environment. US tariffs threaten to complicate access to an important market for products such as insulin pens and orthopaedic implants. At the same time, Switzerland’s regulatory relationship with the European Union remains unresolved. Since 2021, Swiss and EU authorities have not mutually recognised medical device certifications.

Swiss Medtech says the certification gap forces companies to spend additional time and money navigating separate requirements. Internal industry surveys put the annual cost at between CHF 150 million and CHF 200 million. The EU is Switzerland’s most important export market, making the regulatory problem particularly significant for firms that need quick access to hospitals, distributors and procurement systems across Europe.

The association is calling for the removal of trade barriers and wants Switzerland to recognise US approvals for medical devices, a move it says could improve supply and the country’s appeal to investors.

The sector’s industrial importance reaches beyond export statistics because Swiss hospitals and laboratories rely on the same companies under pressure abroad. Medtech firms provide the instruments and equipment used by doctors’ practices, hospitals and diagnostic laboratories. Their position in global supply chains also became more visible during the Covid pandemic, when international demand for Swiss diagnostic and ventilator equipment strengthened cooperation networks.

Those networks helped Switzerland gain access to key active ingredients, according to Swiss Medtech. The experience demonstrated how manufacturing capacity, regulatory access and healthcare resilience are linked. A weaker domestic industrial base could affect more than factory employment if companies move production, research or procurement functions to other locations.

The sector’s current figures still give policymakers room to act. Turnover is at a record level, the trade surplus remains above CHF 5 billion, and Switzerland retains a dense ecosystem of specialised firms. The challenge is to ensure that this existing strength supports the next cycle of products and jobs.

Swiss Medtech says policymakers should make the removal of trade barriers a top priority. That includes progress on EU regulatory arrangements and consideration of Swiss recognition for US medical device approvals. The association argues that faster market access would make Switzerland more attractive as a location for production and investment.

Switzerland’s medtech industry enters its next phase with record sales, but a shrinking pipeline of domestic jobs and investment. The country still offers specialised skills, established research networks and a reputation for precision manufacturing. Its companies remain globally successful, and the sector continues to support thousands of workers across manufacturing, engineering, research and healthcare supply.

The latest survey shows why industry leaders are asking for policy changes now. If 43% of companies have no investment plans and recent job creation remains far below its long term average, the effects may appear first in future production capacity rather than current turnover. Decisions made today will shape where firms develop new devices, train workers and locate high value operations.

The pressure is not limited to one canton. The proposed cuts at Zimmer Biomet in Winterthur provide a concrete example of how international restructuring can affect Swiss regions. Currency movements, wage costs, tariffs and certification rules all influence those decisions.

Swiss policymakers face a clear set of requests from the industry: improve access to the EU market, reduce regulatory duplication, address other trade barriers and consider recognition of US approvals. The medtech sector’s export performance gives Switzerland leverage. Its investment figures show the time available to use it is narrowing.