A NOTE FROM THE EDITOR
 |
I just spent a few days crisscrossing the western part of Switzerland visiting suppliers to gather material for a Regional Focus section. That feature will appear in the October issue of EMDM. But two things blew me away during the trip that are worth mentioning now: the jaw-dropping beauty of Bern and its Renzo Piano–designed Paul Klee museum—Tyler Brûlé, take note—and the heady business outlook among the companies I visited. This was spirit lifting at a time when most business conversations seem to revolve around whether we are in a severe economic downturn or a full-blown recession.
These are boom times in Switzerland, at least for companies with a foot in the healthcare industry. (I’m sure the mood is less effusive in and around Zürich.) Every company director I interviewed had more business than he or she could handle, and many of them are backing up that optimistic outlook with a financial commitment. Ceramaret in the small town of Bôle is a good example.
The company moved into a stunning new steel-and-glass building in the summer of 2002. “We thought that would take care of things for a while,” says Christian Farine, vice president, sales and marketing. “But here we are, ready to expand again.” And this time, the company plans to double, if not triple, production capacity.
Ceramaret designs and produces components from hard materials for use in medical, dental, and other products. The company started out as a supplier to the watch-making industry, and its polishing technique, known as polissage Maret, remains an industry benchmark.
As an aside, one aspect of the 2002 building that intrigued me is its environmental design. With the exception of a small area that needs precise climate control, the building has no air conditioning. The windows are left open at night to draw in the cool air, which is stored and circulated during the day to maintain a comfortable temperature. Heat also is carefully recycled. And the glass facade is fitted with blinds that shift in concert with the movement of the sun to allow in as much sunlight as possible. The blinds direct the sunlight against the white ceiling, which spreads natural light throughout the facility, thus reducing energy use. Integrating such eco-friendly features came at considerable expense, but the company felt passionately that it was worth doing.
There is one looming concern shared by many Swiss firms involved in medical manufacturing, though, and, for once, it is not China. They are bemoaning an impending shortage of machinists.
Apparently, the watch-making industry, which was presumed to be in its last throes not too long ago, has come back with a vengeance. It is luring machinists and other skilled workers from a shrinking labour pool by offering top-drawer salaries. Subcontractors to the med-tech industry are loathe to get into a bidding war (although, ultimately, they may have little choice).
Competition from China, on the other hand, is not causing sleepless nights in this Alpine country. Swiss suppliers to the med-tech and dental markets are determined to maintain the value of the made-in-Switzerland brand by investing considerable sums in R&D year in and year out. As one company director told me, the advanced manufacturing sector in Switzerland is focused on staying several steps ahead of the competition, whether it comes from China or a neighbouring country, and it is harnessing the resources to do so.
This is all anecdotal evidence, but I suspect that the sunny business outlook I encountered among Swiss suppliers to the medical industry is largely true throughout Europe and North America. We have always maintained that medical manufacturing is virtually recession-proof, and these site visits serve as one more piece of evidence. May that lift your spirits, as you scan the otherwise dire economic forecasts in your financial newspaper.
