Steel industry employees in Switzerland protested against potential job cuts as structural changes in the economy threaten the sector. Professor Jan-Egbert Sturm highlights the need for adaptation to these changes, noting Switzerland’s past success in transitioning to more competitive industries like pharmaceuticals and machinery. While acknowledging the pain of such shifts, he emphasizes the long-term societal benefits and reassures that Switzerland will retain its industrial presence, focusing increasingly on high-tech niches.
At the beginning of the week, steel industry workers rallied against the impending threat of job losses. What lies ahead for industries at risk? Professor Jan-Egbert Sturm discusses the crucial need for economic structural transformation.
SRF: Is Switzerland still a viable location for the steel industry? What are your thoughts?
Jan-Egbert Sturm: It’s evident that the economic landscape is perpetually evolving. Swiss steelworks appear to be facing increasing challenges. This mirrors the structural changes we’ve observed in various sectors over the past few decades, such as the textile industry. Adapting to these transformations is essential.
There are claims that the Gerlafingen steelworks are vital for the economy and contribute positively to recycling and CO₂ reduction. A motion in the National Council is calling for federal support. What is your perspective?
Switzerland has navigated past structural changes effectively, enabling us to emerge as one of the world’s most innovative nations. By allowing less competitive industries to decline, we have paved the way for growth in other sectors. As an economist, I view this as a positive evolution, even though it comes with its social challenges.
You mentioned “structural change.” Can you elaborate on that concept?
If we reflect on the last two to three decades, we can see that our textile industry was once far stronger than it is today, while our pharmaceutical, chemical, and biotechnology sectors have surged ahead. The economic landscape today contrasts significantly with what it was years ago.
We have gained competitiveness in the pharmaceutical sector and parts of the machinery and watch industries—areas where we are now seeing increased exports. Concentrating on our strengths has served Switzerland well.
Is this shift merely a reflection of modern economic trends?
Indeed, one could see it that way. Technological advancements have led us to produce different goods than in the past. Consumer demand has shifted, and we no longer seek the same products we favored a few decades ago. Consequently, economic structures must adapt, a process that is often painful yet ultimately beneficial for society.
With a diverse industrial landscape—including machinery, electrical, chemicals, and pharmaceuticals—will there come a time when Switzerland might lack any industries at all due to these structural changes?
While the agricultural sector will certainly persist, Switzerland remains a competitive location with a solid array of industrial companies compared to the international landscape. This situation is unlikely to change drastically soon; instead, various industries will likely continue to specialize in high-tech niches where Switzerland excels due to its well-established knowledge base and strategic location.
The interview was conducted by Sandra Schiess.