Swiss medtech firms warn of weakening investment and job growth

Swiss medical technology companies generated record revenue in 2025, but weaker job creation and investment are raising concerns about the country’s appeal as a business location, SRF reported, citing a new industry report.

About 1,400 companies in Switzerland produce medical technology products such as dental implants, insulin syringes, artificial hip joints, pacemakers and diagnostic devices. They generated 26 billion Swiss francs in revenue last year and employed almost 72,000 people.

The sector is an important Swiss export industry, recording a trade surplus of more than 5 billion Swiss francs in 2025. The European Union is its largest export market, followed by the United States.

The industry association Swiss Medtech publishes a report on the sector every two years. It said the industry remained in good condition, with revenue growing twice as quickly as the Swiss economy over the past two years.

However, more than half of the companies surveyed said Switzerland was less attractive as a business location than it had been five years ago. Net job creation recently amounted to only about 200 positions, well below the ten-year average of around 1,500 jobs. In addition, 43 percent of the companies said they were not planning any investments, the highest share since the survey began.

Swiss Medtech director Adrian Hunn called the development worrying, saying that investments would create tomorrow’s jobs.

The sector’s concerns were underscored by Zimmer Biomet’s announcement on Wednesday that it could cut up to 580 of 730 jobs at its Winterthur production site in the canton of Zurich as part of a restructuring. Swiss Medtech president and FDP member of the Council of States Damian Müller called the planned cuts extremely worrying.

Companies are particularly affected by the strong Swiss franc, trade barriers and high wage costs. Swiss Medtech said trade barriers included US tariffs and unresolved issues in Switzerland’s relationship with the EU.

Since 2021, Switzerland and the EU have no longer mutually recognised certifications for medical devices. Hunn said this had made trade in such products significantly more difficult and cost Swiss companies between 150 million and 200 million Swiss francs a year, according to internal surveys.

Swiss Medtech is calling for fewer trade barriers, regulated relations with the EU and Swiss recognition of US approvals for medical devices. The association said this could ease supplies to Switzerland and make the country more attractive to international companies. It also wants less bureaucracy and lower taxes and charges.

Swiss medical technology companies have been moving parts of their production abroad for years. Simon Michel, head of Ypsomed, said this localisation was necessary. The company, based in Burgdorf, has branches in Germany and China and plans to establish one in the United States.

Michel said production needed to be closer to customers and the pharmaceutical companies supplied by Ypsomed. He added that Switzerland should make its own location more attractive to offset the trend towards producing closer to customers.