Swiss foundry industry: innovation in a challenging environment

The Swiss foundry and die casting industry is competitive despite high costs. Innovation, quality and specialization are its strengths. The companies assert themselves with high-precision components and state-of-the-art production technologies – a strategy that is crucial for their future viability.

Written by Editors EUROGUSS 365

Metal keychain with the swiss Flag on it

Precision as a trademark

Switzerland enjoys an excellent reputation for precision worldwide – whether in the watchmaking industry, mechanical engineering or medical technology. This promise of quality can also be felt in the foundry industry. Despite comparatively high production costs, Swiss foundries manage to survive on the market thanks to specialized products, a high level of innovation and efficient production processes. While the foundry sector in countries such as Germany and Italy is primarily dominated by large automotive suppliers, Swiss companies focus on customized high-end solutions.

However, the industry is under pressure: demand for cast products is fluctuating, particularly in export-dependent industries. After a positive year in 2022, 2023 saw a significant downturn. The Swiss Foundry Association announced at the beginning of February that “the overall production volume fell by 13.6% to 34,685 tons delivered compared to 41,006 tons in the previous year”, which illustrates the current challenge. In Germany in particular, one of the most important sales markets, orders are declining. Nevertheless, the high degree of automation and the focus on future technologies offer opportunities for long-term stability.

Small companies, high specialization

The association is made up of 46 foundries that specialize in precision metal casting solutions. Most of them are small to medium-sized companies that produce high-quality components for specialized industries. The medical technology, mechanical engineering and watchmaking industries are particularly well represented. The production of complex components with tight tolerances makes them internationally competitive.

While mass production dominates in other countries, Swiss companies focus on customized solutions. Thanks to targeted automation and digitalization, they are able to respond efficiently and flexibly to specific customer requirements. This pays off particularly in niche markets where precision and quality are more important than price.

Automation, AI and lightweight construction

Technological progress is one of the key factors for the industry's competitiveness. Many Swiss foundries are making targeted investments in robotics, AI-supported quality assurance and 3D printing technologies. This not only enables increased efficiency, but also more precise production.

One example is the increasing use of AI-supported systems for defect detection: with high-resolution cameras and machine learning, production defects can be identified and corrected in real time. This significantly reduces the reject rate, which is particularly relevant for cost-intensive materials such as titanium or special alloys.

Another topic for the future is lightweight construction. Swiss companies are leading the way in aluminum die casting in particular, as the technology enables high strength at low weight. This plays a decisive role in medical technology and mechanical engineering.

Sustainability is gaining in importance: the use of recycled metals and energy-efficient production methods are increasingly in focus.

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High costs and shortage of skilled workers

Despite all the technological advances, the industry still faces challenges. The excessive energy costs in Switzerland place a heavy burden on production – a disadvantage compared to locations with more favorable framework conditions. While many countries are launching government support programs to ease the burden on the industry, Switzerland remains rather cautious in international comparison.

Another problem is the shortage of skilled workers. Foundry technicians and metallurgy specialists are hard to find. Many companies are responding by stepping up training initiatives and cooperating with universities. At the same time, they are increasingly relying on automation to at least partially compensate for the lack of skilled personnel.

However, it is not only internal factors that are putting the industry under pressure. Stricter environmental regulations, rising material costs and weakening demand from industry are further exacerbating the situation. Many companies are being forced to adapt their business models in order to remain competitive in the long term: “As a result, virtually no new business was generated here. This was due in particular to the economic weakness of Switzerland's largest export country, Germany,” explains Danilo Fiato, President of the Foundry Association of Switzerland.

Future through specialization and innovatio

Despite the challenges, the Swiss foundry industry remains optimistic. Companies will continue to focus on niche markets where quality and technological excellence are crucial. The trend towards sustainable production, digitalization and automation will continue.

Networking with international partners plays a central role in this. Cooperation with technology companies and research institutions could help to open up new markets and reduce costs through innovative production methods. The first positive signs are already visible: while demand from Germany is weakening, orders from other markets are on the rise again.

Author

Editors EUROGUSS 365

euroguss365@nuernbergmesse.de