As the Watches and Wonders watchmaking exhibition opens in Geneva, global geopolitical and economic contexts impacting the sector could be the main topics of conversation. Watch consultant Olivier Müller describes this crisis as “particularly acute”.
Müller notes the accumulation of several negative factors, such as the strong Swiss franc, surging gold prices, and geopolitical tensions. He points out that the situation in the Middle East and the slowdown in the Chinese market are adding to the industry’s challenges.
Yves Bugmann, president of the Swiss Watch Federation, highlights the impact of hostilities in the Middle East on the sector, noting the region’s significance for Swiss watch exports and tourism.
Concerns are also raised about the impact on the US economy due to the conflict, which Müller believes is currently supporting the watch industry. Uncertainty looms over the unresolved US tariffs, adding to the sector’s concerns.
Furthermore, the employment situation is at risk due to the economic conditions. Müller emphasizes the importance of the reduced working hours scheme (RHT) as a short-term solution to mitigate economic downturns. The decision to extend the RHT program beyond July will be crucial for the industry and employment.
Müller stresses that RHT should not be a long-term solution for structural issues and that it is essential to address the root problems affecting the sector.
[Context: The article discusses the impact of geopolitical and economic factors on the watchmaking industry, particularly focusing on the Watches and Wonders exhibition. Fact Check: The statements from Olivier Müller and Yves Bugmann reflect expert opinions on the challenges faced by the industry.]
(Source: Original article by Yann Amedro, web article by juma / Sylvie Belzer)
