The question of location is coming into sharper focus because German companies are suffering from high costs and bureaucratic hurdles. Many decision-makers are therefore intensively comparing wages, location costs, productivity, energy prices, and tax burdens with those in Switzerland. Despite higher wages, the neighboring country impresses with its efficiency, moderate location costs, and stable performance levels. Added to this are lower energy costs and a significantly reduced tax burden, which further fuels the interest in Switzerland.
Wages as a Key Competitive Factor
Although Swiss wage levels are higher than in Germany, the overall comparison is nuanced. While wages do drive up direct expenses, Switzerland simultaneously scores points with long working hours and a high level of performance. Skilled workers there work almost five weeks more per year. This additional time reduces location costs because fixed costs are spread over more productive hours. One manager emphasized that this structure noticeably mitigates the effect of high wages.
A closer look reveals that differences in sick leave rates play a significant role. Swiss employees are absent for fewer days on average, which raises the actual level of productivity. In Germany, on the other hand, the burden of sick leave is considerable. These differences ultimately influence productivity and thus the overall economic strength of the locations.
Productivity as a Driving Force
Industrial companies from southern Germany repeatedly cite productivity and the stable workforce structure as key arguments for investing in Switzerland. Lower employee turnover and a constructive corporate culture play a crucial role there. The higher level of productivity creates predictability and keeps location costs manageable. At the same time, pressure is mounting in Germany because companies have to budget larger sums for skilled workers to remain competitive.
The structural burden of high location costs also remains a concern. The higher the fixed costs, the more the focus shifts to clear efficiency gains. Switzerland scores points precisely in this area and consistently leverages its flexibility.
Energy Prices Influence Investment Decisions
Energy prices in Germany are rising rapidly, squeezing the margins of energy-intensive companies. In comparison, energy costs in Switzerland are significantly lower. Industrial production there benefits from a stable electricity market and an energy mix of hydropower and nuclear power. This considerably reduces cost pressure. Companies heavily reliant on electricity are therefore more frequently examining whether partial relocation makes economic sense.
Energy prices often determine the cost threshold at which new plants become profitable. Because Switzerland has a clear advantage in this regard, the balance is shifting in favor of the Alpine nation. Medium-sized companies are also increasingly recognizing this benefit.
Tax Burden as an Additional Leverage
Another factor concerns the tax burden. Switzerland attracts companies with a moderate tax burden compared to other countries. Germany’s is significantly higher. This gives companies in Switzerland stronger investment incentives and greater liquidity. This aspect is particularly relevant for large projects, as capital commitment and long-term planning depend heavily on the tax environment.
In addition, there is the uncomplicated administrative structure. According to many executives, Swiss authorities are solution-oriented and practical. This strengthens trust and indirectly reduces location costs.
Where the Future Lies
Despite high wages, Switzerland offers a comprehensive package that impresses German companies. Efficiency, stable framework conditions, moderate energy prices, clear procedures, and a moderate tax burden combine to create a location that offers numerous advantages. In Germany, on the other hand, cost pressures are increasing, while location costs remain high and the productivity of many sectors is declining. Therefore, many companies are once again looking towards the Alps. (KOB)