Swiss Defence Industry under pressure

Since the last WMA revision, the geopolitical and security environment have changed substantially. This includes the war in Ukraine, escalation in Iran, European cooperation projects, the list of partner countries and pressure on international supply chains. As a result, at its meeting on 20 June 2025, the Federal Council approved its first Defence Industry Strategy. It aims to preserve Switzerland’s remaining defence-critical industrial base (DCIB) and strengthen the security-relevant technology and industrial base (STIB) as a whole. This survey therefore examines the significance of the forthcoming WMA revision in light of these Federal Council objectives.

Key Findings

The survey yielded the following findings:

1. Existing control mechanisms hinder exports—clear export rules and re-exports are desired: 64 percent of the surveyed Swiss manufacturers of war materiel subject to the WMA, see the current export-control framework as creating substantial practical barriers to their export activities. A large majority of manufacturers of war materiel (>72%) consider the WMA revision’s proposed simplification of export rules and permission to transfer goods onward (re-export) to be very important.
2. Strong positive effects on revenue and business performance expected if the WMA revision is approved: Export-oriented companies—and especially manufacturers of war materiel—expect approval of the WMA revision to have a positive effect on revenue over the next 3–5 years. 87 percent of respondents believe that the new rules would improve business performance through better export opportunities.
3. A stronger defence industry, competitiveness and cooperation are expected: 93 percent of respondents believe that approval of the WMA revision would strengthen the Swiss defence industry overall. A further 80 percent believe that Switzerland’s international competitiveness would improve 77 percent expect an increased ability to participate in international cooperation programmes. Many export-oriented companies are integrated into international value chains as suppliers and can succeed only if they can continue to cooperate internationally and conduct reliable cross-border business.
4. Long-term weakening of Switzerland as an innovation hub feared if the WMA revision is rejected: If the WMA revision is rejected, 91 percent of respondents fear that Switzerland’s position as a location for security-relevant key technologies would be weakened over the long term. If export barriers and foreign customers’ reservations about Switzerland remain high, the entire sector could weaken. Less may also be invested in new technologies, or more development may take place abroad, weakening Switzerland as an innovation hub and reducing the technological competitiveness of its defence industry.
5. Restricted access to supply chains and a weaker order book expected: Three quarters of respondents also believe that access to international supply chains would become more difficult (76%) and that their order books would suffer (74%). Many manufacturers of products or components used in international systems or programmes already feel exposed and face reservations from potential buyers. Rejection of the WMA revision would likely intensify this trend and directly affect orders.
6. Significant relocation of jobs and know-how feared: 64% percent of respondents also believe that rejection would lead to jobs being relocated abroad. Among manufacturers of war materiel, 84 percent expect jobs in parts of the value chain to move. Relocating parts of the value chain often also transfers know-how or technological expertise is developed directly abroad. The Federal Council’s Defence Industry Strategy would not be successful, and Switzerland would lose its remaining relevance in the defence industry’s international business.

Authors

• Dr. Ralph Wyss, Partner, Defence Lead
• Philipp Lüttmann, Partner, Strategy, Risk & Transactions
• Christopher Werzner​, Senior Manager​
• Dr. Philipp Merkofer​, Research Associate​