Report of Annual media conference of the Swiss Textile Federation

The improving economic situation had a positive impact on the Swiss Textile and Garments industry last year. Branch sales rose by 4.6 % to 4.13 billion francs. Exports were also 4.9 % higher at 4.20 billion francs. 72 % of textile products and 52 % of garments go to the EU Member States. The recipe for success of the Swiss companies includes many creative and innovative products. The Federation itself supports the branch with new training courses and the launch of swiss+cotton, the quality seal for the finest Swiss cotton products. On the other hand, trends in Swiss external economic and energy policy continue to give grounds for concern.

The strategy of the Swiss Textile and Garments branch has paid dividends. The companies continue to bank on their professional know-how, innovation and ability to detect trends and always remain a decisive step ahead of the competition with special products. By doing so, they are able to defy the high pressure on prices and margins and growing competition from the low wage countries. For 2007, the Federation is again expecting a positive trend, although overall economic growth is likely to prove weaker.

More jobs worldwide
By the third quarter of 2006, the number of persons employed in Switzerland fell slightly by 1.2 % to 16,100 persons. By the end of the year, the improving economic situation also began to be reflected in the number of jobs with the creation of a further 200 new posts. But the Swiss Textile and Garments industry also employs persons abroad. In the year 2005, some 94,300 persons were working outside Switzerland, 6.5 % more than in 2004. Overall, more than 110,000 persons are employed both at home and abroad for Swiss textile and garments companies, roughly equivalent to the population of Lausanne, the fifth largest Swiss city.

Steep rise in exports and imports
Sales in the textile sector rose by 2.5 % to CHF 2.15 billion. Exports reached a value of CHF 2.09 billion, again up by 2.5 %. Imports too gained strongly, so that the result reported for 2006 was a good 6.6 % higher at CHF 2.34 billion. The number of employees stood at 11,300 persons, 1.8 % more than in the previous year.

The garments branch achieved a steep 6.9 % increase in sales to reach CHF 1.98 billion. Garment exports were up 7.5 % at CHF 2.10 billion. Imports were also buoyant with 5.3 % growth against the previous year to CHF 5.86 million. Higher productivity in the garments industry brought a fall in the number of employees by 7.7 % to 4800 persons.

Problem areas: external economic relations and energy policy
The Swiss Textile Federation monitors the trend of Swiss external economic policy closely. High customs duties are still a barrier to market entrance in many countries and in no other branch are the rules of origin so restrictive as they are in the textile and garments sector. That is why the Federation is increasingly calling for efforts to sign free trade agreements with important trading partners to enable competitive disadvantages and discrimination against the EU to be removed. Clearly, an expansion of the European free trade area will greatly strengthen Switzerland as a production site.

Electricity prices are another factor affecting competition. The new power supply law does not take sufficient account of the demands made by the power-consuming sector of our economy. Once again, energy- intensive businesses are the big losers because their processes require the use of large quantities of energy. As far as they are concerned, the opening of the electricity market will bring more drawbacks than advantages. Higher prices for electricity imposed in Switzerland by subsidies for renewable energies and the auction of power which is in increasingly short supply abroad, are bound to have a massive impact on the branch. The Swiss Textile Federation calls for the industry to be more closely involved in the ongoing debates and transactions concerning future energy supply policy. In practical terms, this means a secure, economical and ecological energy supply with the highest possible degree of self-sufficiency. In particular on the power supply side, action must be taken to counteract the looming dependence on other countries and ensure that companies are able to buy electricity at internationally competitive prices.

Training young people and networking
The new basic course of training for “Textile technologists” was adopted by the Swiss Federal Office for Professional Education after intensive work on the project. The textile professions area now brings together the previous five textile trades to train generalists with a choice of several specialisations and is to be launched in the summer of 2007. The three-year course of basic training leads up to the Federal Certificate of Aptitude. In this way, the Swiss Textile and Garments Industry will secure the presence of well-trained and well-qualified professionals.

The Swiss Texnet innovation network also got off to a successful start. It is designed to bundle textile skills, promote innovation and strengthen partnerships. The first innovation projects are already seeing the light of day. The platform is supported by EMPA St. Gallen, the Swiss Textile Professional School of Wattwil and Zurich, the Technological University of Rapperswil, the Zurich Universities of Applied Sciences of Winterthur and Wädenswil, the Design University of Lucerne and the Swiss Textile Federation. This platform is available to the textile and garments industry and also to its suppliers and customers from every sector. Innovation Day 2007 will be held on August 30, 2007 at the EMPA Academy in Dübendorf.

New swiss+cotton Swiss quality seal
To mark the 30th anniversary of the swiss+cotton brand, the owner of the brand, the Swiss Textile Federation, has adjusted the contents and image. The quality seal, which enjoys national and international protection, is made available under licence. It is awarded for patents produced by Swiss companies. Only premium cotton or extra-long staple cotton may be used for this purpose. swiss+cotton textiles are particularly fine, supple, soft, with easy-care characteristics and a long useful life. So far, swiss+cotton is used for shirts and blouses, e.g. by the Eterna brand and for lingerie made by ISA Bodywear AG. The circle of users is now to be extended to include the whole range of ladies and men’s outerwear, lingerie, functional fabrics and home textiles.

Successful Swiss niche players
The following examples show how Swiss companies occupy successful market niches with their products, developments and technologies:

Calida Holding AG in Sursee (LU) with Calida AG, European leader in high quality day and night lingerie for ladies, men and children. Since 2005, with Aubade, the French luxury lingerie brand.

Strellson AG in Kreuzlingen (TG), combined with Windsor GmbH in Bielefeld to form the Holy Fashion Group

Greuter-Jersey AG in Sulgen (TG), an expert in the finest mesh fabrics

Sefar Holding AG in Thal (SG), world class screen-printing and filtration solutions

Meyer-Mayor AG in Neu St. Johann (SG), the traditional bright weaving mill for high quality kitchen linen made in Switzerland, specialising in high end synthetic raw fabrics, e.g. for spinnaker sales and hot air balloons.

Tisca Tiara in Bühler and Urnäsch (AR), specialist in high quality textile floor coverings.

Tenta AG in Hasle-Rüegsau (BE), Kexpert partner for textile structures such as roofing, attached tents, party and festival tents and sun sales.