Bernina Considers Shifting Sewing Machine Production to Thailand
Swiss sewing machine manufacturer Bernina is seriously weighing a big shift in its production strategy because of mounting economic pressure. The company, known for its high-quality sewing machines, faces tough challenges from United States tariffs and a strong Swiss franc.
Because of these issues, Bernina might move part of its production to Thailand. If that happens, around 40 employees at its Thurgau headquarters could be affected.
Bernina has already had to lay off several employees due to economic struggles. The US market is a crucial revenue source for Bernina, so any changes here will get a lot of attention from the company.
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Economic Pressures and Strategic Decisions
Economic pressure is the driving force behind Bernina’s possible production move. They’ve been making high-priced sewing machines in Thurgau since 1893, but the current financial climate makes it harder to keep everything in Switzerland.
United States tariffs, now at 39%, have taken a big bite out of Bernina’s profits. The strong Swiss franc doesn’t help either, making it even tougher to compete in the US, where about two-thirds of Bernina’s revenue comes from.
Impact on Employees
If production shifts to Thailand, about 40 employees in Thurgau will feel the impact. That’s only a small part of the 334 people working there, but for those affected, it’s a big deal.
Earlier, the company had to let go of seven employees from the assembly department last autumn because of the tough economy. Bernina has kicked off a consultation process, running until February 11, to talk things over with employees who might be affected.
Bernina’s Global Operations
Bernina isn’t new to making products abroad. Since 1990, they’ve run a production facility in Thailand, where they make sewing machines in the low and mid-price range.
Moving more production from Switzerland to Thailand would let Bernina use this existing setup. The idea is to ease some of the financial pressure from US tariffs and currency issues, so they can keep offering high-quality machines to customers around the world.
Dependence on the US Market
The company relies heavily on the US market—roughly 70% of its revenue comes from there. These recent economic hurdles have forced Bernina to hike prices in the US, and honestly, it’s hard to say exactly how that will affect sales.
A task force at Bernina keeps a close eye on the US market and tries to make smart decisions as things change.
Historical Context and Future Outlook
Bernina has a long tradition of making top-notch sewing machines in Thurgau. Since 1893, they’ve built a reputation for quality and innovation in the sewing machine world.
But right now, the economic situation is tough, and Bernina has to look at new ways to stay competitive and financially stable.
Consultation Process and Employee Support
The consultation process matters a lot for employees facing this possible relocation. It gives them a chance to share feedback and discuss options for support.
Bernina seems committed to keeping employees in the loop and involving them in decisions, especially during a time like this.
Bernina’s thinking about moving some production to Thailand. They’re reacting to economic pressures from US tariffs and a strong Swiss franc.
The goal? Keep the company’s finances on track and still deliver quality sewing machines around the world. It’s not an easy call, but they’re weighing the options.
They’re also talking with employees and working through a consultation process. It shows they care about their team, at least as much as you can when tough decisions are on the table.
If you want to dig deeper into why Bernina might make this move, check out the full article here: Swiss Sewing Machine Maker Ponders Thailand Production.