Graphics industry feels foreign competition
The graphic arts industry in Switzerland grew slightly in the first quarter of 2011. Real gross value added rose by 0.7 percent compared with the same period last year, the Swiss Association for Visual Communication (Viscom) announced on Tuesday.
According to Viscom, real gross value added also increased by 0.7 percent over the past year as a whole. The development of value added has been positive again since the second quarter of 2010, it said.
However, the slump of 2009 has not yet been made up for. At that time, a decline of 9.8% was recorded.
Industry on course to shrink
Viscom Director Thomas Gsponer made it clear to the media just how dramatic the situation is: In the past ten years, around a quarter of all jobs in the graphic arts industry have been cut, he said. Currently, 24,350 people are still employed in the industry.
The number of graphics companies also fell from 2,600 to 2,000 during this period, and the total turnover achieved fell to six billion francs. The situation remains tense.
Foreign competition
The graphic arts industry in Switzerland is feeling the effects of competition from abroad due to the strong Swiss franc. Prices abroad are 20 to 30 percent lower, said Gsponer. Importing graphic products is therefore attractive and increases the pressure on competition and margins.
Domestic economic growth weakened slightly. In particular, the most important demand sector, the advertising industry, had lost positive momentum in the first quarter of 2011.
In addition to the strength of the Swiss franc, the Internet has been a problem for the graphic arts industry for years. Today, the advertising industry in particular relies heavily on the Internet. Mobile applications have also become interesting for them. (SDA)
