Defence industry sees planned revision of the War Materiel Act as a key competitive factor

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The Swiss defence industry hopes that the revision of the War Materiel Act (WMA) will lead to more predictable export conditions. From the industry’s perspective, the proposed changes would facilitate the reliable supply of goods to customers and make investment decisions easier, as shown by a recent Deloitte survey of companies directly or indirectly affected. If the revision of the War Materiel Act (WMA) is rejected, more than nine in ten companies fear that this will weaken Switzerland’s position as a hub for security technology innovations. In addition, just under two-thirds expect jobs to be relocated abroad.

The Swiss electorate will vote on the revision of the War Materiel Act (WMA) on 29 November 2026. The bill put forward by the government and parliament aims to facilitate the export of arms to clearly defined partner countries and to allow additional exemptions regarding the re-export of war materiel. A survey carried out by the audit and consulting company Deloitte among 66 Swiss companies directly or indirectly affected by the revision of the WMA reveals what impact they expect this to have depending on the outcome of the vote. The companies surveyed account for around a third of the total market.

Initial situation: Export controls as a competitive factor

The geopolitical and security policy environment, and thus the framework conditions for arms exports, have changed significantly in recent years. “Due to the massive increase in demand for defence goods, the need for international cooperation on security matters and threats to value chains and supply chains, it has become important for Switzerland’s security-relevant technology and industrial base to be able to plan exports reliably and participate in international programmes,” explains Ralph Wyss, Defence Industry Leader at Deloitte Switzerland.

Two-thirds (64 per cent) of the surveyed manufacturers of WMA-relevant war materiel state that their exports are significantly or very significantly hampered by the export controls currently in force. Furthermore, almost half of the manufacturers of specific military goods (such as military simulators) and dual-use goods (such as laboratory equipment or drones) regard the existing rules as an obstacle. Against this backdrop, companies attach great importance to the simplification of export regulations: according to the survey, 72 per cent of companies that manufacture war materiel and 63 per cent of companies that produce specific military goods consider simple export rules to be ‘very important’.

A ‘yes’ vote would strengthen the Swiss defence industry

If the revision of the WMA were to be adopted, 93 per cent of the companies surveyed expect it to strengthen the Swiss defence industry as a whole. Many of these companies supply components or technologies for international procurement and development programmes and are therefore dependent on deliveries abroad that can be reliably planned. In the event of a ‘yes’ vote, eight out of ten companies therefore expect the Swiss defence industry to become more competitive internationally, and 77 per cent anticipate greater opportunities to participate in international procurement and development programmes.

According to 87 per cent of respondents, better export opportunities are likely to lead to greater business success. Export-oriented companies in particular (76 per cent) and manufacturers of war materiel (64 per cent) expect this to have a positive impact on revenue over the next three to five years. At the same time, two-thirds expect it to make their investment decisions easier. However, some of the companies surveyed do not expect a rapid trend reversal and point to investments they have already made abroad.

A ‘no’ vote would weaken Switzerland’s position as a centre for technology

If the revision of the WMA were to be rejected, respondents fear that this could pose risks to Switzerland as a centre for technology and industry: 91 per cent believe that, in the long term, Switzerland could lose importance in the area of key security-relevant technologies. More than half also expect this to have a negative impact on investments in research and development.

In addition, negative consequences are expected for exports and international orders: 76 per cent of the companies surveyed fear that access to international supply chains would become more difficult, and 74 per cent expect fewer orders. If the current export restrictions remain in place, this will, from the industry’s perspective, make it more difficult to work with foreign customers. Respondents see a risk that contracts will increasingly be awarded to companies in countries with less restrictive export conditions. Consequences for the Swiss labour market are also mentioned: 64 per cent of companies expect jobs to be relocated abroad if the revision is rejected. For manufacturers of war materiel, the figure is 84 per cent.

Focus on Switzerland’s attractiveness as a business location

“The survey results show just how much export conditions influence the location decisions and competitiveness of the companies surveyed. If new technologies are increasingly developed abroad, this will adversely affect the technological competitiveness of the Swiss defence industry in the long term. Reliable and predictable export conditions are therefore a crucial factor in location and investment decisions within this security-relevant industry,” says Ralph Wyss.

About the survey

The Deloitte survey on the revision of the WMA was conducted from 16 July to 23 August 2026 with the support of Swissmem. The survey comprised quantitative assessment questions as well as opportunities to provide qualitative comments. A total of 66 companies participated in the survey, all of which generate revenue in Switzerland, employ staff and are directly or indirectly affected by the revision of the WMA – representing around a third of all manufacturing companies. 35 per cent of the companies surveyed produce goods mainly for the Swiss domestic market, while 52 per cent export the majority of their output. 38 per cent manufacture war materiel covered by the WMA, 41 per cent produce specific military goods that are not conventional war materiel, and 67 per cent produce dual-use goods that can be used for both civilian and military purposes.