2024-02-11 07:00:00
Mikron employees at the Boudry machine tool production site, in the canton of Neuchâtel. © Keystone / Christian Beutler
Driven in particular by record watch exports, machine tool manufacturer Mikron had a prosperous year in 2023. And despite the dark clouds hanging over Swiss industry, Marc Desrayaud, CEO of Mikron, sees the future with confidence.
This content was published on February 11, 2024 – 08:00 February 11, 2024 – 08:00
Philippe Monnier
Founded in 1908 in Biel, Canton of Bern, Mikron is listed on the Swiss Stock Exchange and serves key sectors such as watchmaking, pharmaceuticals, consumer goods and automobiles.
Despite the difficulties encountered by Swiss industry, this industrial group which has nearly 1,500 employees has just announced good resultsExternal link for the year 2023. Interview with Marc Desrayaud, general manager (CEO) of the Mikron group since June 2021.
Marc Desrayaud in brief
After a master’s degree in electronics (University of Lyon) and another in industrial marketing (IDRAC Lyon), Marc Desrayaud held a series of senior positions in Switzerland in the following companies: ABB, Rieter Textile Machinery, Autoneum and Oerlikon. In June 2021, he took over as CEO of the Mikron Group.
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swissinfo.ch: In 2023, your sales will have jumped by almost 20%. How do you explain it?
Marc Desrayaud: The pharmaceutical and medical technology industries have been very promising niches. Concerning watchmaking, one of our traditional pillars, we have obtained very large orders in 2022, deliverable over several years; watchmaking turnover was therefore good in 2023 even if order intake fell slightly due to the expected slowdown in this sector.
After a solid post-Covid recovery, Swiss industry is experiencing difficult times. Negative signals have been accumulating for several months, particularly due to weak external demand. How does Mikron fare in this context?
2024 will be a good year because our order books are full. However, the German market is a cause for concern because, in this country, our customers do not seem to have confidence in the future. We observe the same lack of clarity in the United States due to the presidential elections. I am more optimistic about China thanks to the potential of electric mobility and the medical industry.
In the longer term, I think that Mikron will have controlled growth and will undoubtedly target new niches, for example in aerospace or energy. We can also grow overseas, notably in Japan, where customers share our values, and in India, where growth in the aerospace and medical sectors is strong.
Marc Desrayaud has led the Mikron group since June 2021. DR
These positive prospects should not make us forget that Mikron experienced difficult times in the early 2000s and was close to filing for bankruptcy.
Indeed. Fortunately, to preserve the Swiss industrial sector, the Ammann group intervened in 2003 to save our company. Today, this group is our major shareholder, owning almost 50% of Mikron. Since this rescue, the strategy defined with our board of directors has allowed us to remain competitive and become a leader in our niches.
What are the main challenges you face today?
In the past, we had to face two or even three simultaneous challenges. Currently, I can count many more, in this case the electrification of the automobile industry, the post-Covid restructuring of the aerospace industry, the growth and localization of the medical sector, the acceleration of digitalization (including including artificial intelligence), changing expectations among our new employees, multiple geopolitical tensions between the great powers and, of course, the strong franc.
“We face many more simultaneous challenges than in the past”
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In recent decades, the strengthening of the franc has forced us to become more efficient, while low inflation in Switzerland has allowed us to control rising costs. Nevertheless, it is essential that the franc regains parity with the euro and the US dollar; otherwise, we will find ourselves in a particularly difficult situation.
Who are your main competitors?
Above all, companies based in Germany, Italy and North America, with the emergence of new Chinese entrants. However, companies in the Middle Kingdom do not yet offer machines of equivalent performance.
Has Switzerland lost ground in the field of machine tools?
Yes, mainly in two scenarios. Firstly, in highly competitive sectors where foreign suppliers currently offer machine tools of acceptable quality at attractive prices. Segundo, when the demand for machine tools is mainly located in countries with low production costs.
In other words, it is clear that there is a shift in the manufacturing of low- and mid-range machine tools towards Asia, with textile machines as an emblematic example. It is perhaps in this context that companies like Steiger may be led to relocate the production of their machines to China.
Does Mikron still manufacture all its machine tools in Switzerland?
Yes, Mikron continues to manufacture all of its machine tools in Switzerland, targeting niche markets where customers demand high precision, high productivity and superior quality. This clientele seeks a long-term return on investment and values its partnerships with Mikron, as well as our Swiss origin and values, symbols of efficiency, resilience and compliance with regulatory aspects.
Switzerland has sealed around thirty free trade agreements, often in concert with the European Free Trade Association (EFTA). How important are they to Mikron?
The agreement with the European Union is vital because it allows us to export products and import components without paying customs duties; in this way we can expand our network of subcontractors in the eurozone.
Concerning distant countries like China, the agreements allow our customers to benefit from a reduction in customs duties on imports. These reductions are certainly small and gradual but should not be overlooked because these discounts can make the difference between obtaining or losing a contract. Additionally, these chords provide more stability than other comparable instruments like the generalized system of preferenceExternal link.
How is the collaboration going with watchmaking, which is so important for your group?
Watchmaking is a field of excellence at all levels. It is also a very secretive industry. We work over the long term with a very small number of major Swiss watch brands but we are strictly prohibited from mentioning them.
Could some watch companies manufacture your machine tools themselves?
Some watch companies manufacture – in cooperation with partner companies – “specialized” machine tools but not machines as complex as ours.
If watch companies – say Chinese – acquire Mikron machine tools, could they produce products of equal quality to high-end Swiss watches?
Certainly not because the use of quality machine tools is a necessary but not sufficient condition.
How do you fight against illegal copies?
We have many trade secrets, as well as some patents. Although some competitors can reproduce our components based on the details revealed in our patents, or imitate our parts, they are not able to reproduce our solutions. This is partly explained by their lack of knowledge of our manufacturing processes and the absence of the know-how necessary for optimization.
Text reread and verified by Samuel Jaberg
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