Swiss Watchmakers Celebrate a Vintage Year

Add to that purchases by tourists, and certain experts reckon that every other “Swiss Made” watch sold in the world is bought by a Chinese.

What’s more, this trend is expected to continue, said FH president Jean-Daniel Pasche. “Despite slower growth and the risks tied to the trade war between the United States and China, the Chinese middle class continues to grow and its attraction to Swiss watches remains intact,” he told swissinfo.ch.

As for 2019, Pasche talks of “cautious optimism”. Watch exports should continue to grow, he says, but the rate depends on several geopolitical factors, including Brexit and the growing power of nationalism and protectionism in many countries.

This is notably the case in Brazil, where the arrival to power of Jair Bolsonaro is creating significant uncertainty.

“In this context, it’s essential to anchor free trade in bilateral agreements. We hope that talks with the Mercosur countries [Argentina, Brazil, Paraguay and Uruguay] rapidly conclude with such an agreement,” he said.

Pasche is pleased with the free-trade agreement signed with Indonesia at the end of 2018. He also welcomes the Swiss government’s willingness to re-open negotiations to agree a similar deal with the United States.

Swiss Watch Exports, 2000 - 2018

Source: Federation of the Swiss Watch Industry - Click to enlarge

More jobs

The good health of the Swiss watch industry can also be seen in the number of people who work in the branch. Within one year, almost 3,000 jobs were created in the 700 or so Swiss watchmaking companies, according to estimates given to swissinfo.ch by the industry’s employer associationexternal link.

“A growth in jobs was expected, but the size surprised us,” admitted Ludovic Voillat, the association’s spokesman. “It’s all the more impressive given that temporary staff aren’t included in our census.”

This growth of almost 4% practically makes up for the job losses recorded between 2015 and 2018. The 57,800 current employees are not far from the record of almost 60,000 seen in 2014, the reference point for Swiss watchmaking since its reorientation towards the luxury sector at the beginning of this century.

“That shows that watchmakers are confident in the future, despite the uncertainties that are weighing on the global economy,” Voillat said.

Increasingly qualified, watchmakers aren’t building on the growing automation that has been seen in the sector in recent years, he said.

Swiss Watchmaking Jobs

Source: Employers' Association for the Swiss Watchmaking Industry - Click to enlarge