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Chp 04: Leading Sectors for U.S. Exports and Investment

Agricultural Sectors

1. CONSUMER ORIENTED PRODUCTS

Given Swiss generally high income and refined consumer tastes and preferences, it is not surprising that consumer-oriented products are the leading category of U.S. exports. In addition, given Swiss support programs for home-grown products and the relative distance of the US compared to other suppliers, specialty US products or those without local or nearby competition are the most successful. Notable products meeting these criteria include wine, essential oils, nuts, asparagus, certain seafood and high-quality beef.

Nuts:
Nuts (mainly almonds) are the top Swiss agricultural import from the US. The U.S. is the top supplier of shelled almonds to the Swiss market. Swiss Imports of all types of nuts have grown strongly in recent years, leading to increased imports from the US, reaching approximately $55 million in 2005, but dropping back to $44 million in 2006.

Wine:
U.S. wines continue to show a strong shelf presence against tough world and local competition in the retail outlets. There is good demand for higher quality wines, at higher prices, in the restaurant and hotel sector. Distribution of U.S. wines is relatively well established throughout Switzerland. Swiss imports of U.S. wine remained strong at approximately $23 million in 2006.

Essential Oils:
U.S. essential oil exports to Switzerland, based on citrus, peppermint and other raw materials have shown strong growth in recent years and have become one of the top US agricultural exports to Switzerland. The US is the second biggest supplier of these products to the Swiss market, with exports reaching $27 million in 2006.

Fresh Green Asparagus:
U.S. fresh green asparagus continues to enjoy buoyant, but declining demand, mainly due to competition from Mexico and France. Switzerland remains an excellent market for U.S. fresh green asparagus because of the Swiss preference for larger-stalked, tender asparagus. A tariff-rate quota may be applied to imports between May 1 and June 15 each year, but generally imports come in at zero duty. Swiss imports of U.S. fresh asparagus continued to decline and totaled $8 million in 2006.

Meat:
Switzerland continues to be an attractive market for small amounts of U.S. high quality beef, which enters under the special Uruguay Round tariff-rate quota commitments for 1,500 metric tons. The demand for high quality beef remains quite attractive, particularly for upper end resorts during the winter sports season. New to market U.S. suppliers have recently faced some restrictions (plant listing), but prospects exist for resolution on these issues. Total imports of U.S. beef increased to $10.6 million 2006, after declines in recent years due to mainly South American competition. Switzerland also imported a significant amount of horsemeat from the U.S. at approximately $17 million in 2006, but this trade is likely to drop off significantly due to legislative action in the U.S. to prohibit the slaughter of horses for food.

Seafood:
In spite of some fluctuations, Swiss imports of a wide range of fish and shellfish have been growing and stayed at around $10 million in 2006. The main products are salmon, fresh and frozen fish fillets and lobsters and scallops. The U.S. is the top supplier of frozen salmon to the Swiss market.

Fixed Vegetable Fats:
Swiss imports of fixed vegetable fats from the US have also been growing steadily, reaching $13 million in 2006. The US is the top supplier of this product to Switzerland.

2. BULK PRODUCTS

Switzerland shows some rather large swings in import values of U.S. basic agricultural products or processed products for further manufacturing. The most notable are cotton and tobacco.

Tobacco:
Switzerland is home to several multinational cigarette producers. The Swiss cigarette manufacturing industry has a long-standing arrangement with the Swiss government and Swiss farmers to ensure that imports of raw tobacco enter duty free. Manufacturers support Swiss tobacco production by buying all domestic production at prices fixed by the government, but farmers are required to limit production to a small area. This policy makes it possible to maintain Swiss producer prices at a higher level than imported goods, but also provides cigarette manufacturers a means to purchase the majority of its raw tobacco needs at low cost. Imports of U.S. tobacco in 2006 were approximately $41 million.

Cotton:
The remaining productive textile sector generally serves a higher-end market and the US is the top supplier. Swiss imports of approximately $10 million in 2006 were similar to 2005 levels.

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Aircraft & Parts

in millions USD 2005 2006 2007(e)
Total Market Size 1,956 1,017 2,051
Total Local Production* 796 805 837
Total Exports 730 745 774
Total Imports 1,890 1,912 1,988
Imports from the U.S. 301 319 332

In Millions/USD

Exchange rate: 1 USD / 1.20 Sfr.

Sources: The data noted above was compiled using official figures published by the Swiss Customs Authorities and interviews conducted with trade professionals.

* It should be noted that “local production” figures are estimates only as a result of the proprietary nature of company data.

The total Swiss market demand for aircraft and parts, including components and avionics, was valued at an estimated USD 2.05 million in 2007 and is estimated to grow 3-5% in 2007. In 2007, it is estimated that U.S. suppliers garnered a 17% share of the overall market, which is forecast to further grow in 2008 by 4-6%. Switzerland has a relatively large number of operators of aircraft given the small size of the country, including the national flagship carrier SWISS (part of the Lufthansa Group), operators of regional and business jets, air taxi services as well as a substantial number of privately held aircraft.

Switzerland’s sole aircraft manufacturer, Pilatus Aircraft, Ltd., is world renowned for its development of single-engine turboprop aircraft, in particular, the PC-12 civilian aircraft of which over 600 have been built. The company reported strong results in 2006 with a record annual output of 102 aircraft deliveries, thereby increasing demand for avionics, engines, parts and components from U.S. suppliers base on which Pilatus relies. U.S. content of the PC-12, Pilatus’ flagship aircraft, is significant – this illustrates how intertwined the U.S. aviation industry is with the Swiss plane maker. Pilatus also produces the military trainer aircraft, the PC-21, newly developed for modern air forces around the world. In addition to Pilatus, several Swiss aerospace companies are also end-users of parts and components from U.S. suppliers.

Switzerland has approximately 25 manufacturers involved in the development, production and assembly of structural components, systems integration and services for aircraft, helicopter and systems that stem from defense and civilian aeronautics and space technology. These companies are receptive to the idea of broadening their U.S. supplier list and interested in new product offerings.

Although private jet aviation as a business productivity tool is already well accepted in the United States, Switzerland has been slower to embrace this concept. However, Swiss executives and politicians are increasingly taking advantage of business jets for flexibility and to avoid congested airports and flight delays, and demand is steadily increasing in the business/regional market segment. Corporate jets available in the market encompass a wide spectrum, ranging from twin-engine turboprops to reconfigured jetliners, although the number of propulsion airplanes dwarfs the number of twin-engine turboprops. As a result of an increased demand for business jets, demand for parts and services for overhaul, retrofitting, and repair is expected to register growth in 2008.

Best Products/Services

Although SWISS’s aircraft fleet is predominantly Airbus, many of the parts and components used in maintenance and overhaul are sourced from a broad network of U.S. suppliers, including various components, avionics, aircraft flight instruments and communication instruments. The majority of Swiss aerospace enterprises e.g. MROs and OEMs place orders with small, medium and large U.S. suppliers, which include (spare) parts, components, avionics, pilot accessories, maintenance parts and components, engines, seats, etc. In addition, a number Swiss operators of private/corporate jets procure new or used aircraft from U.S. sources.

Opportunities

N/A

Resources


Automotive Parts

in millions USD 2005 2006 2007(e)
Total Market Size 1,059 1,090 1,095
Total Local Production* 2,951 3,039 3,042
Total Exports 2,856 2,941 2,945
Total Imports 964 992 998
Imports from the U.S. 39 40 42

In Millions/USD

Exchange rate: 1 USD / 1.20 Sfr.

Sources: The data noted above was compiled using official figures published by the Swiss Customs Authorities and interviews conducted with trade professionals. It should be noted that “local production” figures are estimates only as a result of the proprietary nature of company data.

The total Swiss market demand for automotive parts, equipment and accessories was valued in 2006 at USD 1.09 billion, and market demand increased by about 3% in 2006. The Swiss economy is projected to grow by about 2% in 2008. Industry sources predict 2-3 % growth in market demand for auto parts, accessories and aftermarket products. The stronger growth is predicated on predictions for stronger consumer spending and sales of new automobiles. Imports from Germany have traditionally had a solid market share, currently 47 % followed by France with 14% and Japan with 12%. In the past few years, U.S. imports have had a market share under 4% and were valued at USD 40 million in 2006. Bolstered by deregulation in the automotive sector, the demand for U.S. imports is slowly increasing and should rise modestly in 2008 as Swiss importers and distributors demonstrate a growing interest in purchases of U.S. automotive parts and equipment. The average exchange rate in 2007 of 1 USD equals 1.20 Swiss francs makes U.S. products competitive and affordable for the Swiss. Nonetheless, U.S. suppliers should carefully evaluate their pricing and sales terms to remain competitive.

Overall, Swiss automotive market demand, including sales of new and used automobiles and trucks, gasoline stations, repair and service facilities and providers of related services amounted to USD 66 billion in 2006, reflecting the market’s importance in the Swiss economy. The overall car fleet in Switzerland is assessed at 3.8 million automobiles and is expected to grow only marginally over the next two years as a result of higher retention rates of automobiles.

The Swiss automotive market was liberalized on January 1, 2005, giving consumers greater choice in buying new automobiles. Many Swiss car dealers and repair facilities note that liberalization is bringing more competition into the market and is beginning to put downward pressure on prices. Although U.S. automobiles garnered only a one-percent market share in 2006, demand for U.S. automobiles could also increase as a result of liberalization of parts distribution and the availability of more U.S. and other foreign auto parts whose product lines could be incorporated into the distribution networks of independent parts dealers. A larger U.S. automotive market share would spur demand for both OEM and aftermarket products. In 2006, imports of new automobiles amounted to 269,400 units, representing an increase of 3.9% from 2005.

Best Products/Services

As economic growth continues at a healthy 2% in 2008, consumer demand will increase for luxury items, including hi-fi equipment, aluminum wheel rims, wider tires, etc. Products with a high degree of receptivity on the Swiss market include specialty equipment, specialty wheels, specialty tires, in-car entertainment systems, styling products, garage equipment, diagnostics equipment, and performance enhancing products.

Opportunities

N/A

Resources


Consumer Goods

in Millions USD 2005 2006 2007(e)
Private Consumption * 229 237 243
Public-sector Consumption 433 444 45
Total 2723 2810 2880

In Millions/USD

Exchange rate: 1 USD / 1.20 Sfr.


* Figures include: Food & beverages, apparel & footwear, accommodation & energy, household furnishings, health & hygiene, transport & communication, leisure, hotel & restaurants, educational expenses, other spending.

Data obtained from: UBS Economic Information Center, Federal Office for Statistics, and several Swiss trade magazines covering consumer trends and retail trade.


With one of the world’s highest per capita incomes, Switzerland (pop. 7.5 million) is a small, but very attractive consumer market. The continued economic growth over the last four years, reflected in low unemployment and the rise in disposable income, has led to a growing consumer spending of between 2 to 3 percent annually. Swiss total household spending topped USD 237 billion (SF 284 billion) in 2006. Purchasing power in Switzerland at USD 34,000 per capita is the second highest in Europe after that of Luxemburg (USD 34,900).


Switzerland’s consumer market is highly competitive and reflects in many respects the multicultural and multilingual Swiss society with 20 percent of the population of foreign origin. Swiss consumers tend to be willing to pay somewhat more for high quality products and products produced by “environmentally friendly” methods. The Swiss place increasing importance on environmental and ethical standards on the production and source of food products, textiles, furniture, energy and motorcars.


Demand for consumer goods has been growing in almost all categories (furniture, clothing, shoes, household appliances, cosmetics and personal care products), including those sectors that are the most sensitive to economic fluctuations, such as leisure, foreign travel, culture and arts, motorcars etc.

New-to-market aggressive discounters are beginning to change the structure of the Swiss retail market. Price pressure is intense, and demand is growing for imports from low cost countries, especially from Asia. However, the Swiss penchant for quality and brand names means that there is still demand for U.S. products in the medium and upper priced segments of the market. Innovativeness, focus on niches, and branding are key factors to success.

Best Prospects/Services

  • Sporting Goods
  • Apparel: Functional wear/sportswear and high-end labels
  • Furniture: Modern furniture with clear design and functionality
  • Household appliances for the high-end market
  • Electronic toys / educational games
  • Giftware
  • Designer jewelery

Opportunities

  • Sporting Goods: Swisspo, ISPO (German trade fair attracting a lot of Swiss buyers)
  • Apparel: TMC (center with permanent showrooms for the trade)
  • Furniture: imm-cologne (German furniture fair attracting a lot of Swiss buyers)
  • Giftware: Ornaris
  • Food/beverage and kitchen equipment: Igeho
  • Cosmetics: Beauty Forum Swiss
  • Jewelry: Baselworld

Resources

Educational Equipment & Supplies

in millions USD 2005 2006 2007(e)
Total Market Size 1,681 1,748 1,782
Total Local Production 1,343 1,396 1,423
Total Exports 622 646 658
Total Imports 960 998 1,017
Imports from the U.S. 239 248 252

In Millions/USD

Exchange rate: 1 USD / 1.20 Sfr.

Sources: The data noted above was compiled using official figures published by the Swiss Customs Authorities and interviews conducted with trade professionals.

* It should be noted that “local production” figures are estimates only as a result of the proprietary nature of company data.

The Swiss market for educational equipment and supplies was valued at an estimated USD 1.78 billion in 2007, and imports from the U.S. amounted to USD 252 million. Switzerland spends annually the equivalent of 5.8 percent of its GDP on education and related activities. Public funding amounted to an overall USD 20.8 billion for education – the cantons spent USD 18.6 billion, and the federal government spent USD 3 billion in 2003. (More current data is not available). Switzerland spends about USD 9,100 annually per student, USD 2,600 more per student than the average of the 29 OECD countries. The federal government focuses on tertiary education, which includes R&D. In addition, it finances the federal universities and research institutes ETH (Zurich), EPFL (Lausanne), PSI (Zurich), and EMPA (St.Gallen, Thun, Zurich) and contributes to the cantonal universities.

In fall 2006, the Swiss Federal council decided to spend more on research and education with an annual budget increases of six percent between 2008 and 2011. Most federal funding goes towards the universities with about USD 833 million spent annually on research and development. About USD 520 million of this amount is earmarked for combined educational and scientific programs that are managed by the Swiss National Science Foundation (SNF), an agency of the Swiss Federal Department of Science and Education and equivalent to the U.S. Science Foundation. The public funds are matched about equally by the private sector. As a result of strong competition among Swiss universities, private sector funding is constantly increasing and plays an important and popular role. R&D will remain a top priority in Switzerland with strong support from both the private and public sector. U.S. manufacturers of scientific and laboratory instruments for university have excellent opportunities in the Swiss market.

In addition to opportunities on the tertiary level, two significant factors and changes in the primary and secondary Swiss curricula will boost opportunities for U.S. firms in the near future: (1) the teaching of two foreign languages, including English is mandatory at primary and secondary schools in the vast majority of cantons, and (2) the cantonal educational book publishers supplying public schools are expected to be privatized soon. This early English instruction is expected to boost market demand for English-language educational materials. The Swiss market demand for educational books was valued at USD 78 million in 2006, of which USD 55 million represented the demand for textbooks, including licensed products for use in public schools supplied by the cantonal (state-owned) book publishers

Best Prospects/Services

  • Scientific and laboratory instruments
  • IT hardware and software for educational applications
  • Scientific models and demo equipment
  • Textbooks and learning software
  • Experimental and demo systems and kits for chemistry, biotechnology, physics, etc.

Opportunities

  • WORLDIDAC BASEL 2008 - International Educational Equipment and Supplies Trade Show - October 29-31, 2008 URL: http://www.worlddidacbasel.com/go/id/ss/lang/eng/

Resources

Electric Power Generating and Distribution Equipment

in millions USD 2005 2006 2007(e)
Total Market Size 1,224 1,230 1,267
Total Local Production 3,062 3,123 3,216
Total Exports 2,197 2,262 2,329
Total Imports 359 369 380
Imports from the U.S. 39 42 44

In Millions/USD

Exchange rate: 1 USD / 1.20 Sfr.

Please note: In the absence of hard statistical data, estimates were obtained from the Swiss Association of Power Generating Companies (VSE), Zurich; the Swiss Dept. of Energy; and BKW, the main Bern-based power generating company. Investments in this sector are subject to substantial fluctuations typical of large projects.

The total Swiss market demand for electric power generating equipment was valued at an estimated USD 1.27 billion in 2007, and U.S. imports were valued at USD 44 million. The market is forecast to grow between 3-5% in 2008. Switzerland’s power companies are continually seeking equipment to streamline and upgrade operations, and demand will continue to grow for power management systems (IT), switching and distribution equipment. Of the power produced in Switzerland, 40% is generated from five nuclear power plants, and the other 60% is mostly generated from hydropower, which is distributed to surrounding countries, especially Northern Italy, in order to stabilize the European grid during periods of peak demand. Hydroelectric facilities still have a limited potential for expansion but will fall short of growing demand. Other sources of renewable energy in Switzerland are in their infancy with some efforts to promote solar, geothermal and wind energy.

To prevent a predicted energy shortfall by 2020 and avoid expensive power imports, Switzerland will require an estimated USD 20-30 billion of investment in new generating facilities over the next 15-20 years. On February 21, 2007, the Swiss Federal Council (cabinet) approved a long-term strategic plan that proposes to replace the country’s ageing nuclear power plants while also pursuing alternative sources of energy. Details of an action plan detailing how the government can implement its new policy has not been released, but is widely expected to be made public in 2008. Furthermore, two utility companies established a joint venture company to develop plans for two new nuclear power plants in line with the Federal Council’s energy policy.

The new Federal Law on Energy Supply entered into force on January 1, 2008 and its implementing ordinance will be issued in April. The law will allow the Electricity Commission to cap energy prices and business consumers of at least 100,000 Kwh to purchase their electricity freely, therefore bypassing the expensive cantonal monopolies. The major private sector utility companies are Romande Energie, FMB, Axpo, Atel and BKW. The Swiss national grid operator "Swissgrid" is the national transmission system operator and has full responsibility for operating the 6,700 kilometers of the Swiss high-voltage grid.

Best Products/Services

  • Control instruments for power management and distribution
  • Power management software and relevant IT hardware
  • Power switching and distribution equipment
  • Emergency control and management systems
  • Renewable energy systems (photovoltaic, wind, geothermal, biomass)
  • Equipment for power plants (generators, turbines, etc.)
  • Complete turnkey power generating plants (gas, nuclear, hydroelectric)
  • Small compact plants for decentralized power generation
  • Engineering services

Opportunities

PowerGen Europe - Milan, Italy - June 3-5, 2008

POWER-GEN Europe is Europe's premier power generation conference and exhibition - renowned not only for its size, but also for the quality of its attendees.

Leading industry suppliers active in the pan-European market have an exhibit presence, while the conference consistently attracts senior speakers from around the world. The combined conference and exhibition provides a vibrant and influential forum for European and international industry executives to make valuable connections, enabling them to succeed in one of the world's most diverse and challenging power markets. Further information can be found in the following link: http://pge08.events.pennnet.com/fl/index.cfm

PowerGen International – Orlando, Florida – December 2-4, 2008

The world's largest power generation event covering key industry trends and technologies

International Organizations

goods and services procured by UN agencies, and Geneva 2005 2006 2007(e)
World Meteorological Organization, WMO 10.76 12.40 n/a
International Telecommunication Union, ITU 18.12 n/a n/a
International Labor Organization, ILO 58.63 78.04 n/a
World Intellectual Property Organization, WIPO 43.94 31.90 n/a
United Nations Office at Geneva, UNOG 62.74 31.84 n/a
United Nations High Commissioner for Refugees, UNHCR 111.99 89.12 130.4*
World Health Organization, WHO 149.83 132.85 131.89


In Millions/USD

Source: United Nations, New York 2004/2005

*Procurement from Supplier Management Service only; excludes procurement made by field offices and implementing partners.

Geneva, Switzerland, is host to many international organizations which are active in fields as varied as the following: humanitarian aid; trade; human rights; the environment and sustainable development; training and education; peacekeeping and security; meteorology; intellectual property; health; telecommunications; and labor. Some UN agencies and other international organizations, including the United Nations High Commissioner for Refugees (UNHCR), World Health Organization (WHO), the International Committee of the Red Cross (ICRC), and the International Federation of the Red Cross (IFRC) carry out much of their procurement in Switzerland and represent an attractive market for U.S. manufacturers and service providers. Among the items procured are vehicles and spares, office equipment (e.g. furniture, photocopiers), IT, tools, tents, food, and pharmaceuticals to provide humanitarian aid for victims of war and catastrophes or to facilitate access to life-saving goods during epidemic and disease outbreaks. Geneva-based procurement fluctuates with the development of conflicts and disasters around the world and varies between USD 400 – 900 million annually.

The UNHCR and its implementing partners provide food, water, shelter, medical and other types of assistance to refugees worldwide to help them find safety and the means to re-start normal lives. In the past few years, UNHCR has sought to inject more transparency and competition into its procurement practices in order to choose from a wider range of suppliers and obtain the best value for its procurement. UNHCR’s purchases fluctuate with the development of conflicts around the world, and statistics for goods purchased from 2003 through 2007 were as follows:

2003 90.5 million

2004 99.6 million

2005 111.9 million

2006 89.1 million

2007: 130.4 million

The following UN agencies based in Geneva primarily procure office furniture, general office supplies and construction services/supplies for their own operational needs: International Labor Organization (ILO), World Meteorological Organization (WMO), World Intellectual Property Organization (WIPO), United Nations Office at Geneva (UNOG), and the International Telecommunication Union (ITU).

Opportunities Return to top

U.S. suppliers of goods and services procured by U.N. agencies and other humanitarian aid organizations should register to become approved suppliers and should also consider meeting with appropriate procurement chiefs. Please note that as of March 1, 2008, UNHCR’s Geneva-based supplier management service operation will be moved to Budapest, Hungary, which will be UNHCR’s new Global Service Center for human resources, finance, procurement and IT support. For more information, please contact CS Switzerland.

Resources Return to top

International Federation of the Red Cross

International Committee of the Red Cross

United Nations High Commissioner for Refugees

World Health Organization

United Nations Office Geneva

Aid & Trade Event (Washington DC, 2009)

Laboratory and Scientific Instruments and Equipment

in millions USD 2005 2006 2007
Total Market Size 839.7 863.5 909
Total Local Production 1,462.5 1,560 1,179.8
Total Exports 1,170 1311 943.8
Total Imports 547.2 614.5 673
Imports from the U.S. 70.9 72.5 74.6

Exchange rate: 1 USD / 1.20 CHF.

Source: Swiss Customs Tariff

HS Codes 9027.20 (chromatographs and electrophoresis instruments), 9027.30 (spectrometers, spectrophotometers, spectrographs), 9027.50 (physical and chemical analysis instruments), 9027.80 (mass spectrometers), 9031 (measuring and testing equipment/instruments).

The total Swiss market demand for laboratory equipment and scientific instruments amounted to an estimated USD 909 million in 2007. Total imports in 2007, valued at USD 673 million, accounted for about 75% of the total market demand. The Swiss market is an attractive market for U.S. suppliers of analytical and process control equipment and instruments, which enjoy an excellent reputation and are much in demand.

Switzerland’s R&D activity, in relation to the size of the country, is rather impressive at an estimated USD 36 billion from 2004 through 2007. In addition to the wide range of research activities undertaken by Swiss universities and institutes, there is an enormous amount of research activity in the private sector, especially in the chemical, pharmaceutical, biotech, food, machinery and micro technology industries. The Swiss manufacturing industry is heavily export-oriented and depends upon the latest technology in order to retain its competitiveness on the world market. Therefore, state-of-the-art R&D remains a top priority in Switzerland.

There are a number of important new Swiss projects for research and development. Novartis Pharmaceutical, is in the process of expanding its Basel global headquarters to encompass additional numerous research, production and administrative buildings and its Campus of Knowledge and Innovation. Hoffmann La Roche, the Swiss biotech company, has approved extensive investment plans for its Kaiseraugst, Switzerland, site in biotech drug research, development, and production of innovative biopharmaceuticals. The Federal Institute of Technology in Zurich (ETH) is expecting to complete its “Science City,” a state-of-the-art scientific complex by 2011.

The main end-users of laboratory equipment and scientific instruments are Swiss manufacturers, including about 180 chemical companies, 230 pharmaceutical producers, 200 biotech companies and 165 food manufacturers. They account for about 45% of the total market demand. Research institutes and universities, mostly federally funded, account for about 35% of the market demand and 20% of the end-user market are cantonal (state) and communal (city) laboratories.


Best Products/Services

  • Mass-Spectrometers (MALDI-TOF, ICP)
  • NMR spectrometers
  • LC analyzers (liquid chromatography)
  • Gas chromatographic analyzers
  • Spectrometers (IV/UV range)
  • Ion selective analyzers
  • Titration, extraction, and supercritical extraction systems
  • Robotized systems (sample changers, etc.)
  • Automated analytical systems
  • pH, redox, temperature, conductivity, viscosity measuring instruments
  • Precision flow metering instruments for (inductive, doppler effect, etc.
  • Supplies
  • 3-D simulation software for laboratory/research use (simulating laboratory tests

Opportunities

ILMAC Basel, Switzerland, September 21-24, 2010, Industrial exhibition and conference for research and development, environmental and process technology in pharmaceuticals, chemicals and biotechnology, 554 exhibitors, 15,000 trade visitors

NANOEUROPE, St. Gallen, Switzerland, September 16-18, 2008, annual trade show and conference covering nanosciences and relevant equipment and services, 80 exhibitors, 3,500 visitors.

Resources

ILMAC (main Swiss scientific and lab equipment trade show:
http://www.ilmac.ch
NANOEUROPE (trade show in nano-sciences):
http://www.nanoeurope.ch
Swiss National Research Program:
http://www.snf.ch
Federal Institutes of Technology in Zurich and Lausanne:
http://www.eth.ch, http://www.epfl.ch
Paul Scherrer Institute:
http://www.psi.ch
Swiss Federal Department of Science & Education:
http://www.bbt.admin.ch


Medical Equipment

in millions USD 2005 2006 2007(e)
Total Market Size 3,370 3,313 4,100
Total Local Production* 7,114 5,339 7,875
Total Exports 5,691 4,271 6,300
Total Imports 1,947 2,245 2,500
Imports from the U.S. 631 734 500

Exchange Rate: 1 USD = CHF. 1.20

Source: Swiss Customs Tariff

The above statistics cover the following HS Codes: 9018-9022 (excl. 9021.2100 & 9021.2900)

The total Swiss market demand for medical equipment was valued at an estimated USD 4.1 billion in 2007. Total imports 2007, valued at USD 2.5 billion, accounted for about 61 % of the total market demand. With Europe’s highest per capita income, Switzerland is an attractive, demanding market with one of the best national health care systems in the world. The country’s liberal trade and investment policies favor access for a host of products and technologies. The dispersed nature of its health care system, which follows the pattern of its federal structure with 26 autonomous districts (cantons), contributes to the diversity of the market.

The combination of an aging population, rising living standards and new treatment methods is causing demand to grow at an above-average pace. Accordingly, as incomes rise, so do people’s willingness to spend more on health services. Leading Europe on healthcare spending, Switzerland spends about 11 percent of its GDP on its national healthcare system. However, as in other national healthcare systems, cost-containment is a growing concern, and there is a clear trend to reduce hospital beds and to close down some hospitals.

U.S. equipment and supplies enjoy a good reputation in Switzerland. Many Swiss doctors and professors of medicine have been trained or have practiced in the United States, and there is considerable interchange in procedures and techniques. These factors create a strong demand for U.S. equipment and supplies.

Although Switzerland’s market is relatively small with a population of only 7.4 million, it is a highly sophisticated market with a strong demand for advanced technologies. It also offers the additional benefit of being a test market that is strategically placed in the heart of Europe. The country’s 337 hospitals are mostly administrated by the 26 cantons or by local municipalities. In addition, a host of private clinics and medical homes (157) cater to the needs of a demanding local and international clientele and serve as professional training grounds for physicians. In 2006, 15,532 medical doctors (of whom 12,041 are specialists) and 3,847 dentists with private offices were registered (figures for 2007 are not yet available). Specialized services, such as transplant capacities, are mainly offered at university clinics. In addition to laboratories in doctors’ private offices, hospital, clinical and independent laboratories share the Swiss market. In 2007, the Swiss Association of the Leaders of Medical Analytical Laboratories counted some 200 members.

Best Products/Services

The average Swiss expects that hospitals will have the latest technology; therefore, U.S.-made products that are on the cutting-edge of technology will have great market potential. Furthermore, there is a growing recognition in the medical community that new innovative technologies often contribute to more economical patient care by helping to reduce the length of hospital stays.

The best sales potential for U.S.-manufactured medical equipment is in the following areas:

  • Quality home health care, outpatient and rehabilitation equipment
  • Advanced diagnostic systems (computer tomography, imaging systems, Nuclear Magnetic Resonance (NMR) scanners)
  • Monitoring and intensive care equipment (X-Ray and Magnetic Resonance Imaging MRI)
  • Sophisticated, computerized equipment and software
  • Cardiology equipment
  • Orthopedic devices
  • Clinical laboratory equipment
  • In-vitro diagnostic products
  • Disposables, surgical consumables

Opportunities

IFAS, Zurich, Switzerland, October 28-31, 2008, biannual trade fair for medical and hospital equipment, 440 exhibitors, 18.000 trade visitors.

Resources


Safety and Security Equipment

in millions USD 2005 2006 2007(e)
Total Market Size 437 448 465
Total Local Production* 828 872 901
Total Exports 589 625 643
Total Imports 198 201 207
Imports from the U.S. 93 97 99

In Millions/USD

Exchange rate:  1 USD / 1.20 Sfr.

Sources: The data noted above was compiled by conducting interviews with trade professionals.

* It should be noted that “local production” figures are estimates only as a result of the proprietary nature of company data. 

Switzerland (pop. 7.4 million) sits squarely in the heart of Western Europe.  Although Switzerland is known as a very safe country, in recent years there have been incidents of violence, (armed) robberies, youth crimes, and burglaries.  Switzerland’s demographic profile has changed within the last decade.  Accompanying societal changes is a growing security consciousness among the Swiss at all levels of government and in the business community with measures being taken to protect data, access control, peripheral security, transportation and other critical infrastructure.  There is growing demand for equipment used in access control, detection, surveillance and law enforcement.  Furthermore, there will be ample opportunities for sales of security products in the fields of aviation, supply chain, and retail.  Switzerland is host of the UEFA EURO 2008 in June, prompting considerable investment in security and market growth in 2008 estimated at 3-4%. The total Swiss safety and security market was valued at an estimated USD 448 million in 2006 with total imports valued at USD 201 million.  U.S. imports were valued at USD 97, which represents an import share of nearly 50%.  U.S. suppliers enjoy excellent acceptance in the Swiss safety and security market.

Largely predicated on sales of CCTV, biometric applications and proximity systems, large and small-sized enterprises have begun to retrofit and incorporate new systems and technologies into existing security systems.   The growing Swiss presence of regional headquarters of U.S. and other multinational corporations represents a significant end-user market segment.  Airports represent another major purchaser category based on ongoing security enhancements to meet international agreements and bilateral agreements with the EU.  Switzerland’s largest airport, the Zurich International Airport, must improve its security standard for airport employees, thereby considering biometric data as a possibility.  Implementation of stiffer security standards for passengers is also envisioned.

Best Products/Services

The most promising growth prospects are those in newer market segments, including airport passenger and baggage screening equipment, CCTV systems, perimeter protection systems, access control systems (including biometric identification systems), law enforcement equipment, explosives and metal detectors, forensic equipment, residential alarms and other advanced electronic systems.  U.S. suppliers are especially competitive in access control equipment, biometrics applications, law enforcement supplies and equipment, forensics equipment, and surveillance equipment, including CCTV Systems. 

Swiss private and public sector interest in biometric-based solutions and services is growing rapidly.  Both Swiss end-users and OEMs are using biometrics in a broad field of applications where secure identification is required.  The Swiss government has taken measures to tackle hooliganism at sports events, including automated facial identification systems.  Major Swiss OEMs are incorporating biometric identification technology into their mechanical keys.

Opportunities

N/A

Resources

Telecommunication Equipment & Services

in millions USD 2005 2006 2007(e)
Total Market Size 8,839 9,063 9,292
Total Local Production 7,031 7,099 7,167
Total Exports 990 974 959
Total Imports 2,797 2,938 3,085
Imports from the U.S. 896 943 992

In Millions/USD

Exchange rate used USD 1 = Sfr.1.20

Note: These figures are unofficial estimates.

In 2006, the Swiss telecommunications equipment and services market grew by 2.5 percent and was valued at USD 9.1 billion.  The same percentage growth is forecasted for 2007, the exchange-rate-adjusted equivalent of USD 229 million.  No other country invests as much per capita in telecommunications as Switzerland.  Private Internet use is the second highest in Europe, and Switzerland ranks third in terms of E-commerce.

Switzerland is an international leader in the rollout of broadband services. ADSL is available for more than 98% of telephone connections and is offered by 30 different suppliers. Mobile network coverage is high in all regions, despite the country’s mountainous topography.  The networks of the three largest providers cover 99% of the Swiss population.  Swisscom (62%), Sunrise (19%) and Orange (18%) are the suppliers with the biggest market shares.  Swisscom is no longer the sole provider of telecommunication services, which has resulted in healthy price competition.  These providers operate their own GSM (Global Standard in Mobile Telecommunications, 2nd Generation, 900 and 1800 MHz) networks, while a fourth player, Tele2, obtained a license to offer services via third-party networks only.

Mobile services, including mobile Internet, and broadband Internet continue to drive the market.  Demand for ADSL was strong in 2006; the Swiss market reached more than 2 million ADSL subscribers (19% growth rate) and 660,000 cable connections (10% growth rate). However, the Swiss ADSL market demand demonstrates the disadvantage of being completely controlled by an ex-monopolist telecom provider. With Swisscom dictating both the pricing and the speed, Switzerland has started to lag behind in both aspects.  Surrounding countries like Germany, France and Italy offer ADSL connections at a fraction of the price.  The Swiss Competition Commission has been investigating the high prices Swisscom charges to its competitors for the ADSL service, but no immediate result can be expected. 

One of the strongest competitors to Swisscom is Cablecom.  With over two million cable TV connections in Swiss households Cablecom controls the second largest network and is currently the only other company besides Swisscom that offers true triple play service (data, voice and television/radio) to its customers in Switzerland.  Cablecom was acquired by Liberty Global, Inc., for an estimated USD 2 billion.  On December 16, 2005, Sunrise and Cablecom entered into a strategic partnership on mobile telephony.  Swisscom started its IPTV network in late 2006 and has already received over 20,000 orders for the service, resulting in a six-week installation delay for new customers.

In the mobile telecommunications market, there were 7.4 million users in 2006, representing a 9% increase over the previous year.  Forecasts include continued growth in information technology spending in Switzerland, a further decrease in mobile communication costs, and expanded services for third-generation mobile devices, such as IPTV.  Continued strong growth is expected for VOIP solutions.

Best Prospects/Services

  • Telecommunication hardware and software
  • Wireless communications hardware and software
  • IT Security (software, hardware and consulting)
  • Voice over IP solutions
  • Virtual Private Networks
  • Outsourcing
  • Consulting
  • Mobile and radio services
  • Internet/Web services
  • Data transmission
  • Leased line business

Opportunities

  • Orbit/iEX - Switzerland’s largest IT show and conference held in Zurich from May 22-25, 2007

Resources

Travel & Tourism

in millions USD 2005 2006 2007(e)
Outbound Swiss Travel* 14,255 14, 956 16,500
Inbound Intl. Travel 9,835 10,319 11,100
U.S. Market Share** 1,145 1,237 1,385
Average Swiss spending per trip*** 3,920 3,980 4,100

In Millions USD / Exchange rate:  1 USD / CHF 1.20

*Total sales made by travel agencies; not included is travel primarily within Europe organized by individual travelers via the Internet.

** Sales made by the travel trade plus estimated spending during the trip (food and beverages, shopping, hotels, entertainment, locally made arrangements, etc.)

*** 2007 average spending per person for arrangements made by travel agencies 

Sources of information:  Travel Inside (trade publication), Swiss Statistical Office, three major Swiss tour operators, University of St. Gall, and Swiss International Airlines. 

The share of Swiss outbound travel sales made via the Internet grew by 2 percent in 2007 and registered about 18 percent of the total market.  Internet sales were primarily for flights, individual hotels, and car rental reservations.  Most Swiss still turn to travel agencies for purchases of packages above USD 1,000 per person as well as long haul travel.  About 90 percent of the growth in Internet sales is from travel within Europe, and Swiss travelers widely use the Internet as a source of information in planning a vacation. 

The healthy Swiss economy and the continued optimistic outlook are the main factors supporting growth in Swiss outbound travel.  Switzerland’s leading tour operators are noticing a growing trend towards more expensive trips, air travel in business class as opposed to economy class, and luxury hotels.  Double-digit growth is reported for 2008 advance bookings to destinations where dollars can be used.  The U.S. is expected to be the main beneficiary.  

The main factor supporting Swiss travel to the U.S. is the relatively weak dollar, which has lost 10 percent and more in value versus the Swiss Franc.  Other factors include a more “relaxed” worldwide political environment, the Swiss preference for safe destinations, and a relatively low language barrier.  A strong additional incentive is easy accessibility with six airlines offering 13 daily direct flights to eight U.S. gateway cities on the East and West Coasts.  Some Swiss travel agencies that had reduced or even totally dropped their U.S. products in recent years are now back on the market and expanding their offers. 

Swiss citizens are eligible to enter the U.S. under the visa waiver program. The new Swiss passport with biometric data has been in use for over one year.  Swiss travelers perceive that immigration procedures to the U.S. have become considerably more efficient and friendly than previously. Swiss media are covering U.S. cities, states and regions on a regular basis and introducing them as attractive travel destinations to their readers.

Best Products/Services

  • Fly & drive packages
  • Motor homes
  • Packages for outdoor activities (Jeep tours, river rafting, soft adventure type tours)
  • Cruises
  • Beach vacation packages (Florida, Hawaii)
  • Golfing
  • Educational travel/study packages

Opportunities

Visit USA Seminar 2009, January 2009, Zürich, Switzerland
TTW, October 30-31 2008, Montreux, Switzerland (Swiss version of ITB)
Ferien 09, Bern January 15 – 18, 2009  (Consumer Show)
FESPO 09, Zürich, January 29 – February 1, 2009 (Consumer Show)

Resources

The Visit USA Committee Switzerland is organizing a number of complementary workshops and events during the year, some in coordination with the Visit USA Committees in Germany and Austria.