Made in Switzerland
ESC marketing, Climeworks troubles, logistics in a clump
Dear Insider,
Some people say that Switzerland has trouble with marketing.
After all - compared to the high-pressure sales tactics often employed across the Atlantic, the Swiss come across as shy and even bashful.
But - that would be a mischaracterization.
Given the opportunity to promote itself on one of the biggest stages in the world, Switzerland once again shone brightly…
…and employed a bit of genius to make a lasting impression.
Read on to find out how…
Enjoy,
Ian
💥Quick hits
News bits and bites…short and (sometimes) sweet
Better than expected
In the first quarter of 2025, Switzerland's economy grew by 0.7%, surpassing expectations of 0.2% to 0.5%. The growth was primarily driven by the services sector, with the pharmaceutical industry performing particularly well, while the machinery sector faced challenges.
The stronger-than-expected performance may be partly due to companies accelerating exports ahead of anticipated U.S. tariffs announced by President Trump.
But, economists caution that this growth might not be sustainable, as early indicators suggest a potential slowdown in the coming months.
Many predict that the overall economic growth for the year could be around 1%, below the long-term average of 1.5% to 2%.
Central Switzerland container spot
War isn’t all about guns. It’s also logistics.
The Swiss Army has inaugurated its largest logistics hub in Emmen, Lucerne, designed to store up to 600 standardized containers.
These containers, each capable of holding up to 16 tonnes, house various military equipment, including tanks, servers, kitchens, and medical facilities.
The facility features a fully automated system that can retrieve a container within four minutes, enhancing operational efficiency.
While this centralized approach streamlines daily logistics, officials acknowledge it poses a concentration risk during crises, necessitating the distribution of containers across multiple locations in such scenarios.
Climate cuts
It was a star - and yet…
Swiss carbon capture company Climeworks is cutting over 10% of its workforce amid economic challenges and declining momentum in climate tech.
This decision follows reports revealing that its Icelandic plants, Mammoth and Orca, have significantly underperformed.
Mammoth captured only 750 tons of CO₂—just 105 tons net—since opening, far below its 36,000-ton annual capacity.
Orca has yet to exceed 1,000 tons per year since 2021.
Climeworks attributes the layoffs to broader industry issues and uncertainty surrounding a planned U.S. facility, especially with shifting government policies.
Despite setbacks, the company states that both plants are progressing, with upgrades underway.
Private equity hole
The problems with ClimeWorks affect more than just the company in question.
Zug-based private equity firm Partners Group also faces questions.
The reason?
The PE giant sunk approximately $200 million in the climate startup as part of its $600 million funding round.
Now…?
Consider sharing this post - someone will get smarter if you do!
Vision completed
The 2025 edition of the Eurovision Song Contest is now history. A hotly-contested competition saw Austria take home top prize.
But there was another winner too - Switzerland
As host country, Switzerland put on a spectacular show, moderated by Sandra Studer, Hazel Brugger and Michelle Hunziker, and hosted in Basel.
The wildly popular, annual tradition included plenty of marketing for the host country - including the hit song “Made in Switzerland” which highlighted the many inventions that have Swiss roots.
(It also cleverly positioned the coveted “Made in Switzerland” mark - a highly-protected description - in a very positive way.
Makers of globally recognized Swiss items like Victorinox, Rolex and Lindt will be benefitting for years to come.)
But while the show went off without a hitch - as befitting a country known for organization - the entire scene was not without controversy.
Israel’s Yuval Raphael drew politically-motivated protests, but managed to push through and take 2nd in the competition.
Even before the contest got underway, however, a more local dispute threatened to throw a wrench in the careful preparations.
The City of Basel took a line of credit worth more than 35 million CHF to help fund the show’s organization, most of which was earmarked for security costs.
To prevent this step, the EDU party (one of the country’s smaller groups) tried to rally residents against Eurovision with a referendum. It was defeated by a 2/3 majority.
A Chart is Worth…
How much CO2 does Switzerland emit? Good question…
The Bonus
🪙 Tax break? - For the 2nd time in the last decade, the cantonal government is considering lowering corporate taxes. It currently has the second-highest rate in the country at 19.61% (behind only Canton Bern). (Link)
🔥 Gas up? - With an eye to the future, the Swiss Federal Council has proposed building 5 new gas-powered power plants to prevent blackouts. Not everyone is convinced… (Link)