Switzerland does not possess many resources that favour industrial development. It has limited agricultural raw materials as well as limited mineral resources. Despite of these, it is one of the leading manufacturing countries in Europe.

Most of her industries are now fully developed. However, the problem of transporting and marketing goods together with small domestic market still continue to limit industrial development and expansion.

Switzerland is a country that is struggling to effectively compete with better favoured countries like France, Germany an Britain.

The Swiss economic structure compensates for its environmental problems through the following factors:

Factors for industrial Development in Switzerland

Location: The position of Switzerland in the centre of Europe has enabled her to tap the market for her finished products from her surrounding countries and also raw materials can easily reach Switzerland through the local terminal points by road, rail, and water for example coal and iron ore from Germany can easily reach Switzerland through river Rhine.

Availability of power: the numerous waterfall, streams and rivers have provided unlimited supply of water for HEP generation. This power until recent accounted for about 90% of the total electricity produced. But presently, their structure is likely to change as nearly all the good sites have been developed. Further demand of HEP will be met at a very low cost. As a result thermal and nuclear power are increasingly being used.

Forests are also an important source of energy. A combination of HEP, nuclear, thermal as well as energy from forest has contributed greatly to the industrial growth and development of Switzerland.

Availability of labour. Being sparsely populated, Switzerland has greatly benefited from her central location by importing highly skilled labour from her neighbours like France, Germany, Austria, and Italy. This labour force has been fundamental in the production of very high quality goods but using very little raw materials and that is often times covers the transport cost of the imported raw materials and still leaves profits.

Efficient transport network. Although Switzerland is a small country, it is served by effective transport network characterized by an electrified railway network, a well-constructed road system, a natural waterway to and from Switzerland along the Rhine River and the fleet of ships at the North Sea.

Neutrality policy. Switzerland enjoys international confidence since it is trouble free for example in its history; its land has never been troubled by any major war. It is taken as a centre of peace.

Political stability:  The stable political atmosphere and security for a long a period have helped in attracting local and foreign investors and reduction of defense budgets.

Capital:  Availability of capital mainly from the Swiss Banks for financing industrial activities and developing infrastructure, Switzerland is an important financial centre- Swiss banks are the safest in the world and therefore attract deposits from many people in many countries. This makes capital for industrialization readily available.

Technology:   Improved science and technology leading to producing of better quality products using very little materials. This has greatly cut down costs of production and transportation.

Market:  Availability of markets because of the existence of an affluent class with high standards of living and high population in urban areas like Geneva, Zurich, Basel, Bern and from neighbouring countries like France, Germany, Italy, Austria and Britain.

Specialization and precision: This has kept the cost of materials and transportation as low possible as the Swiss specialize in skilled, precision work on small, valuable items for example in the watch making industry, the cost of materials in only about one twentieth the cost of labour.

Diversification of the economy:   The need to diversify the economy given the fact that much of the land in the Alpine and Jura was not suitable for agriculture has led to industrial development.

Water:  Water supply from river Rhine, Rhone, Inn and others is used for cooling machines, navigation and dumping of wastes and sewerage.

Government Policy: Favourable government policies supporting industrial development like giving loans, training skilled labour through a science-biased education system.

The survival of Swiss industry is based on the following formula: Build specialized products such as motors, turbines, and watches. Guarantee the delivery date. Offer the necessary financing through an efficient banking network. Provide effective after-sales service, whether it be for a minute part for a watch or a giant housing for a marine diesel engine. Sell the product all over the world, thus achieving economies of scale. And, where necessary, build local factories.

Factors limited industrialization in Switzerland                               

A part from timber Switzerland lacks enough raw materials and coal as source of fuel.

Switzerland is a land locked county, completely isolated from the sea. It relies on the importation of raw materials and export of manufactured goods through the neighbouring counties and ports, which increase the cost of production.

Two thirds of the country is mountainous so the construction of transport and communication lines is rendered difficult.

 

Switzerland lacks adequate man- power of her own because of the small population. It has to rely on other countries for her labour.

Switzerland is a land locked country. It is only accessible by the Rhine River to the North Sea through other countries. This makes transportation of raw materials and goods very expensive.

Switzerland lacks essential raw materials for most industries. There are no important deposits of coal, iron ore, petroleum and other basic minerals on which heavy industries are based.

Most of the land is mountainous so the construction of transport and communication lines is rendered difficult and this restricts the distribution of industries and establishment of large industrial centres hence they resorted to cottage industries.

There is competition for overseas markets with other producers within the region and outside requiring more precision or high grade products. Besides, industry faces competition for land with other sectors like agric, forestry and others.

Climate is unfavourable. During winter temperatures are very cold leading to freezing of many rivers and this obstructs water transport which is the cheapest and most convenient for bulky goods.

Shortage of indigenous or home labour due to a small population. Switzerland has more jobs than its own people can fill. Workers from other countries make up about a fifth of Switzerland's labour force.

Switzerland has a limited domestic market because of small population of about 6.7 million people.

Another problem is high cost of labour. In Switzerland, most of the labour required is skilled but expensive.

Solutions to the above problems

Types of Industries in Switzerland

Textile industry: This based on imported cotton from Egypt. It comes via the River Rhine and Italy. Some of the cotton products include ribbons, embroiders and cotton pads. The Swiss are also experts at neating, spinning, weaving and dying. They make high quality clothes and other foot wear of the latest fashion. They also experts in manufacturing textile machines.

Chemical and pharmaceutical industry: By the 1970s, this was their third most important export earner and it is based on local salt and coal import from the Ruhr coal field in Germany. Basel is the leading centre producing products like dyes and chemicals, paper and textile  manufacturing industry as well as  chemicals. This branch of industry is categorized  into three.

Precision industry: This specialized in producing high quality products which are small involving little raw materials but are highly valuable because of highly quality workmanship involved in the production.

The products include optical instruments like binoculars , microscopes, surveying tools and  topographical instruments are as well as instruments for navigation and meterology. The Swiss also specialize  in the making of cameras and projects office equipment such as typewrites, calculators, and duplicating machines.

The precession industry is based in the Jura mountain villages especially la Chex de Fonds Lade and Bienna.

Watch making: This is the oldest form of industry in Switzerland. The Swiss have been watchmakers for more than 200 years .The country has over 300 watch making factories. The majority of which produce components like springs, dials rather than complete watches. Just like the precession industry, this is concentration in the Jura Mountain villages. It can also be found around Geneva.

The Omega and Rolex are important Swiss companies dealing in the watch assembling. Over 50 million watches are expected annually out of Switzerland.

The principal producing centres are La Chex de Fonds, Lacie and Southurn. However, the  Swiss watch making monopoly is being undermined by Japanese entry into watch making industry.

Metal working and machine industry: This industry is centred in Zurich, Winterhur  and St.Gallen. The industry employs the biggest number of people and produces items like turbines, steel engines, embroidery machine and sewing machines , machine tools like spanners, making machines, pressure  pumps and food stuff canning.

Locomotive industry: It specializes in the making of Swiss buses, Lories, cables cars, trains and tractors .It is also found in Zurich and Winterhur.

 

Your journey up the 3883 metre-high Klein Matterhorn will take you on the highest aerial cableway in Europe. Once you reach the viewing platform up in this Matterhorn glacier paradise, you'll enjoy a 360º panorama over the Swiss, French and Italian Alps and lose yourself in this magnificent mountain world of glaciers and eternal snow.

 Electrical Engineering industry:

This industry specializes in the manufacture of machines and tools used in the production distribution and consumption of HEP for example transformers, generators, fuse boxes among others

The industry depends on domestic scrap which is melted in electric controlled furnaces and converted into specialized steel of high quality.

The leading producing centre is Zurich. Products like turbines, electric wires and cables and safely devices for electrical products are also produced in the industry. Other centres of electric engineering are Basel and Geneva. Two - thirds of all electrical engineering products are for export.

 A sketch Map of Switzerland Showing Industrial Distribution

 

The main foodstuffs industry in Switzerland.

The availability of large quantities of fresh milk has given rise to a number of food processing industries which have achieved world distinctions. These include:

Cheese manufacture. This specializes in the manufacture of hard cheeses. The main type cheese produced is Emmental. Other types are Gruyere and Schabzieger.

Chocolate manufacture at Neuchatel - Serrieres, Versoix near Geneva and Lausanne.

Condensed milk industry started in the Canton of Zug. Numerous factories situated for the most part on the plateau in districts where dairying is important which are changing the liquid milk into other forms which will last longer.