More Bally, the latest Swiss shoe will be produced in summer (cross-border guide)

Context

The news of the closure of Bally's Swiss factory has been circulated recently. The last shoe produced in Switzerland will be seen during the summer. There is no indication where the production will be moved. The company's decision to reconcentrate production to other locations was made due to strong international competition and the need to reduce production costs.

Bally is one of Switzerland's oldest and most prestigious footwear brands, with a history dating back to 1851. The company was founded in Schönenwerd, Canton Solothurn, and has maintained its headquarters in Switzerland to this day. Bally's production has been characterized by great quality and precision, with a focus on the production of high-end shoes.

The closure of Bally's Swiss manufacture is nothing new for the footwear industry. In recent years, many other Swiss companies have closed their production sites in Switzerland and moved to countries with lower production costs. Switzerland is a country with a very high cost of living, which makes it difficult for companies to maintain production in Switzerland.

Bally already closed its shoe factory in Schönenwerd in 2014. The decision to close the factory was made due to the loss of competitiveness compared to other companies in the sector. Bally tried to reduce production costs by moving production to other

Operational details

Bally's production will move to another country, thus marking the end of an era for the latest Swiss shoe. There is no indication where the production will be moved, but it is assumed that it will be in a country where the labour force costs less. This move could have significant consequences for the Ticino economy and the workers involved.

Bally's decision to move production overseas comes as no surprise, considering the increasing global competition and pressures to reduce costs. According to a report by the Organisation for Economic Co-operation and Development (OECD), labour costs in Switzerland are among the highest in Europe, with an average hourly wage of CHF 48.80 in 2022.

In comparison, the countries with the lowest labour costs are China (CHF 4.43 per hour) and Poland (CHF 8.35 per hour), according to the same report. This means that Bally could save up to 90% of labour costs by moving production to one of these countries.

However, Bally's decision is not just motivated by a desire to reduce costs. According to a source close to the company, "production in Switzerland has become too complex and expensive, with increasingly stringent regulations and rules". The source adds that “the lack of a local textile industry and the lack of a skilled workforce have made it difficult for Bally to maintain production in Switzerland.”

The

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Key points

The latest Swiss-made shoe will be seen over the summer. There is no indication as to where production will be moved, but it is assumed that it will be in a country where labor costs less. Bally's stores in Switzerland will remain open.

The decision to move production abroad was made by Bally, one of the most important Swiss footwear companies, following the lack of guarantees regarding environmental and workplace safety regulations. In fact, since 2023, the federal law on environmental regulations has come into force, which requires companies to reduce their environmental impacts and take measures to reduce waste production.

According to internal sources, the decision to move production abroad was made after the company evaluated the possibility of continuing to produce in Switzerland. However, production costs in Switzerland were considered too high compared to the benefits of maintaining local production. Production costs in Switzerland are in fact 20% higher than those in other European countries.

Shoe production in Switzerland is an important industry for the Ticino economy. According to data from the Federal Office for Statistics (FOS), shoe production in Switzerland generated a value of 1.3 billion francs in 2022. However, shoe production in Switzerland has been declining for several years due to competition from foreign countries with lower production costs.

The decision to move production abroad has been criticized by some unions and politicians. According to them, the decision to move production abroad could have negative consequences for the Ticino economy and for employment. In particular, they worry that shoe production in Switzerland could be moved to countries with weaker environmental and labor safety regulations.

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