Economy

The Swiss mechanical, electrical, and metal (MEM) industry continues to face headwinds, with a recent survey indicating limited improvement in business sentiment. The quarterly SME MEM index stood at -30 points at the end of January, up slightly from -37 in October, according to a barometer published by Swissmechanic on Wednesday.

Despite the modest increase, three out of four small and medium-sized enterprises (SMEs) in the sector view their current situation as unfavorable. Persistent strength of the Swiss franc and a shortage of skilled labor are cited as the primary challenges, Swissmechanic reported.

A reduction in customs duties, from 39 to 15 percent, is providing only limited relief. “For the majority of companies, this does not signify a turnaround, but only a moderate improvement in business prospects,” the organization stated.

Investment within the industry remains under pressure. Approximately 26 percent of affected companies cite financial constraints, including a lack of equity, as preventing investment. Two-thirds of firms plan to maintain production capacity at current levels, with “no question of large-scale expansion,” according to Swissmechanic.

The challenging economic climate has led to increased use of short-time perform. Nearly 17 percent of surveyed companies are currently utilizing this measure to mitigate labor costs. The Swiss government recently extended the maximum duration of unemployment benefits for short-time work from 18 to 24 months, a measure intended to support the industry during the downturn.

The negative sentiment among MEM SMEs has persisted for two years, remaining in negative territory, according to Nau.ch. The Handelszeitung reports that the industry suffered a significant export decline in 2020, with reductions across all major regions, particularly in the United States and Europe. The publication as well notes that one in four companies in the Swiss metal, machinery, and electrical industry are planning layoffs.

Although some companies are exploring new opportunities, such as increased economic interest in Ukraine despite the ongoing conflict, the overall outlook remains subdued. Recent data indicates a decrease in new orders for the Swiss metal, electrical, and machinery industry, with a nearly 20 percent drop in the second quarter of this year.

Despite a reported increase in turnover and orders for the first nine months of the year – a 13.6% and 13.1% rise respectively, as noted by Swissmem president Hans Hess – the current indicators suggest continued difficulties for the sector. The industry is also grappling with a broader trend of deindustrialization, which is costing jobs and expertise, prompting initiatives like the Swissfactory Group to seek innovative solutions.

Supermercados Metro inaugurated a new location in the Mall Aventura Santa Anita district of Lima Este on November 11, 2025, marking a renewed phase of expansion for the Chilean-owned Cencosud retail group in Peru. The new store, the company’s 68th in the country, occupies 1,178 square meters of sales space.

The opening coincides with Metro’s 33rd anniversary operating in Peru, where it has become a prominent player in the retail sector, according to Cencosud. Fernando Ureta Vicuña, Cencosud Perú’s country manager, stated that the Santa Anita location represents a commitment to the Peruvian market and the creation of formal employment opportunities. “In this modern store, our customers will be able to find everything they need for their day-to-day life, quality, variety and low prices, with the attention that characterizes Metro,” Ureta Vicuña said.

Cencosud had paused significant expansion in Peru for six years prior to the Santa Anita opening, with its last new store launching in Gamarra, La Victoria, in 2019. The new location is strategically positioned in front of the planned Estación 2 of the Lima Metro’s Line 2, a factor highlighted by Cencosud as enhancing accessibility for shoppers.

Cencosud Retail Peru S.A., which operates both Metro and Wong supermarkets, currently employs 10,947 people, according to company records. The company’s registered address is located in Miraflores, Lima. Metro maintains a network of 68 stores across Peru, encompassing both hypermarket and supermarket formats. A list of Metro locations in Lima and other provinces is maintained by the company.

The opening in Santa Anita follows Cencosud’s broader strategy of reinforcing its presence in the Peruvian market. The company’s expansion plans include future projects, such as a strip center in the Rímac district, slated to open in 2026, which will house both Metro and Smart Fit facilities.