[LINK] "Strong Franc Chokes Swiss Manufacturers Fighting for Life"

[rfmcdonald]

Bloomberg's Alice Baghdjian writes about how the strength of the Swiuss franc, especially relative to the Euro, has been hurting the Swiss economy.

Nestled on the banks of Lake Zurich, humidifier-maker Condair AG’s factory provided a good living for its 41 workers. Then in November 2014, beset by high manufacturing costs, the company decided to transfer production to Germany. In seven months, Condair’s only Swiss plant will wind down for good.

When the Swiss National Bank a year ago Friday lifted the cap on the franc, allowing the currency to strengthen, it confirmed the company’s decision -- and its view that the Alpine nation can’t compete in manufacturing. In 2012, the most recent year available, Switzerland had the highest labor costs in Europe, at 51.25 euros ($56) per hour, government figures show. In neighbors Austria, Germany and France, the comparable cost was 29.75 euros, 30.50 euros and 34.25 euros respectively.