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Euro Craziness Is Screwing Swiss Economy Too
A number of Swiss companies are finding the high Swiss Franc is hurting their results, reports the WSJ.
In recent weeks the Franc has been on a high as it continued to be a safe-haven for investors, many of whom were about the unstable Euro.
Swiss companies face difficulty in keeping their goods and services internationally competitive as prices rise.
Now the Swiss watch makers and pharmaceutical companies that make up much of Switzerland’s industry are trying to figure out ways to cut costs.
Lonza Chief Executive Stefan Borgas told the WSJ that his company is considering moving more of its production overseas to cheapen labor costs. Clariant has already began the process, WSJ reports.
Worse still, its unlikely that the Swiss government will intervene — previous attempts in 2009 proved impotent.
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