Swiss Firms Struggle to Maintain Performance Amid European Challenges

Swiss companies are facing mounting performance issues despite their financial stability outperforming many European peers. According to a bi-annual report by Alvarez & Marsal, 14.6% of Swiss businesses lack adequate operating performance, a notable increase from 9.1% the previous year. This figure is second only to Germany. While only 5.1% of Swiss firms are classified as distressed, their robustness is under question, with 22.7% lacking strong balance sheets, indicating potential future vulnerabilities.

Key sectors under pressure include Specialised Retail, Construction, and Consumer Food & Beverage, navigating heightened input costs and consumer spending limitations. Swiss exporters in pharmaceuticals and luxury goods face additional risks from a strong franc and potential U.S. tariffs.

Despite these challenges, experts believe Switzerland's structural resilience remains advantageous. However, as global economic pressures persist, demand for restructuring solutions may rise, urging Swiss firms to remain vigilant.