Swissmem is the leading association for SMEs and large companies in Switzerland's mechanical and electrical engineering (MEM) industries and related technology-oriented sectors. The Swiss Textile Machinery Association is the oldest sector, founded in 1940. It represents the interests of the Swiss textile machinery manufacturers. Speaking to Fibre2Fashion, Cornelia Buchwalder, Secretary General of Swissmem, says that in the world of textile manufacturing, ITMA is really the ‘greatest show on earth’.
How is the Swiss textile machinery industry reviving post-pandemic?
Despite the pandemic, 2020 and 2021 were good years for the Swiss textile machinery industry. Although order intake remained at a high level in 2022 thanks to a strong first half of the year, it fell sharply in the second half of 2022 in view of the economic slowdown in the main sales markets. This significant slowdown in the global economy is also increasingly impacting sales.
What were the export figures for 2022?
Swiss textile machinery exports were 2.8 per cent higher in 2022 than in 2021. The main export markets were China, India, Germany, Türkiye and the USA. However, this should not hide the fact that the markets are slowing down and that this growth was mainly due to the good first half of the year.
In times of geo-political tensions and power supply issues in Europe, how are the Swiss textile machinery companies performing?
We live in a time with probably more simultaneous challenges than ever before. The Ukraine war, the related energy shortages in Europe, and the still unresolved supply chain challenges. Added to this are the high inflation rates and the resulting curbing of consumption, to name just the most prevalent ones. Of course, these are the challenges that industry in all countries face. Here, too, the Swiss textile machinery industry’s longstanding ability to seize opportunities from the situation will carry them through this difficult time.
When do you expect the markets and demands to stabilise?
Irrespective of inflation, the leading economic indicators give no cause for optimism. Although unemployment rates in the industrialised countries remain very low by historical standards, consumer sentiment is at an all-time low in the face of rapidly rising prices and major geopolitical risks. In all major economic regions, consumer sentiment is well into contractionary territory. These indicators suggest that it will take some time for consumer and business sentiment to turn around.
What kind of support is the association and the Swiss government providing to the industries in the textile machinery sector?
As an association, we support our members in many ways. On the one hand, we promote the Swiss textile machinery industry. Be it via symposia in markets such as Indonesia last August. Or through our presence on social media. Furthermore, we invest a lot in innovation support for our member companies. We regularly organise company-specific workshops on current topics and challenges. Currently, we are focusing on the topic of sustainability. We also work together with universities and training institutes to promote cooperation in Switzerland and other countries. Most recently, we signed a memorandum of understanding with the DKTE during India ITME.
Unlike other (European) countries, the Swiss government does little direct industrial promotion. However, it is more important to us that the government sets good framework conditions so that Swiss industry can continue to produce in Switzerland, find good employees and have close access to the very good Swiss university landscape. These factors are much more important to ensure the long-term competitiveness of the Swiss textile machinery industry.
What have been some of technologies and innovations that have come out in the last two years at Swissmem for the textile sector?
Both digitalisation and sustainability are not just buzzwords but continue to influence all developments and innovations.
Regarding sustainability, it is and stays a big and very important topic. It has been for years, but now it is even more important due to the new EU strategy for sustainable textiles. As an association, we have also taken on this topic and are currently running an individual programme for our member companies. Of course, some member companies are already very advanced in this topic, but others are certainly able to benefit.
Digitalisation offers a wide range of opportunities, be it in product or process optimisation or in the development of completely new business models. Our member companies use these opportunities to generate maximum customer benefit.
Today, it is important that all machines and solutions become more efficient and also transition to intelligent manufacturing. How much do Swissmem spend on R&D to achieve this transition?
It is the 12th year in a row that Switzerland has topped the World Intellectual Property Organisation's (WIPO’s) Global Innovation Index, which is based on dozens of indicators in over 130 countries. The report examines areas such as patents, advanced technology and the complexity of production and exports.
WIPO stated that the combination of strong research, the ability to finance innovation and the rapid application of private sector technology in economic markets were factors of the Swiss success.
The Swiss textile machinery industry operates in this environment and therefore has the best framework conditions to work continuously on innovations.
How do you envisage the future for Swiss textile machinery association?
To answer this question, I would like to go back in time… Many of the companies in our association of textile machinery manufacturers were founded in the second half of the 19th century, which have gone through many ups and downs and have gained outstanding reputation over time. Having such a long history, the Swiss companies have constantly managed to anticipate changes, developed their business strategy, and have continuously evolved. With this history, I am very sure that Swiss companies will also play an eminent role in the (textile) world of tomorrow.
What breakthrough technologies for the textile industry will Swiss companies showcase at ITMA 2023?
In the world of textile manufacturing, ITMA is really the ‘greatest show on earth’, as it is where the progress of textile and clothing technology is measured and benchmarked against previous years, and vital contacts are made between customers and suppliers worldwide. Swiss companies are renowned for their innovative spirit and commitment to the four-yearly exhibition series. Looking ahead to ITMA 2023 in Milan (June 8-14), as always, the companies will present their innovations at the exhibition. However, it can be assumed that the areas of automation, digitalisation and the further development of machines and solutions to reduce the consumption of raw materials such as energy, water and chemicals will be the focus.
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.