Zug-based companies from the fields of industry, FinTech and Life Sciences focus on digitalization. Increasing levels of digitalization have led to fundamental transformations and will be a contributing factor in structural changes in many industries. More and more companies operating in the core sectors of industry, FinTech and Life Sciences are going digital; this is vital to Zug as a business location.
Industry 4.0 is the highly automated, data-based integration of value-added chains. Digitalization is having a profound impact on existing sectors, especially the service sector. Individual business models have fundamentally changed and are thus exerting pressure on traditional suppliers. In keeping with this trend, more and more companies operating in the core sectors of industry, FinTech and life sciences are counting on digitalization. All things considered, Zug could benefit from this. The majority of jobs in the town are highly specialized. Even when it comes to future-oriented technologies, these professions can only be replaced with digital offerings to a certain extent. As an IT location, Zug could also play its part in developing solutions for Industry 4.0. In its latest regional study on the Canton of Zug, Credit Suisse examined the trend toward digitalization and the associated effects on the economic region of Zug.
Digitalization and automation in the industrial sector
Digitalization and automation play a key role for the business location of Zug; they are the drivers that modernize industrial processes, save space or reduce costs. The household appliance manufacturer V-Zug is an impressive example of this. The new assembly and logistics building was recently completed during the remodeling works for the company’s plant in Zug. From now on, this building will only need one third of the space to manufacture the same volumes as before. The new build in the northeast of V-Zug’s premises is a strong commitment to Zug as an industrial site and a key element in the company’s long-term plan of making production processes and logistics more compact and flexible.
The digital financial world
The business location of Zug is increasingly becoming a pioneer in the digital financial world. And it shows, as many FinTech companies specializing in digital currencies and blockchain technology have set up branches in the canton. The Crypto Valley Association (CVA) (www.cryptovalley.swiss) was founded to promote successful collaboration among FinTech companies and enhance their international profile. Robo-advisors are already starting to compete with traditional retail banks. In a few years’ time, the FinTech sector could really help to add to Zug’s economic clout. The Institute of Financial Services Zug (IFZ) was also clearly impressed by Zug’s strength when it published its latest FinTech study.
To highlight the fact that Zug is the current leader in digital currencies, in May 2016 Zug town council became the first government organization to accept Bitcoin as a payment method for fees.
The Digital Health Alliance networking platform
The Technology Forum Zug (tfz) and 15 companies from the pharmaceutical, medical technology, diagnostics, and ICT sectors have teamed up with the Digital Health Alliance (DHA, http://www.digital-health.ch) to provide a platform that actively promotes cross-industry communication between the players in the Swiss healthcare sector. The DHA aims to promote discussion and exchange and work towards generating long-term solutions. As a think tank, it grapples with the developments occurring in several industries and countries. It also acts on a regional level and strives to achieve internationally viable solutions. Its members now comprise 18 prestigious companies in the field of healthcare. The alliance is made up of companies and organizations spanning the entire spectrum. The main players are pharmaceutical, medical technology and ICT companies, as well as healthcare providers (hospitals and doctors), laboratories, medical insurance companies, and patient advocacy groups. Companies or organizations wanting to join the Digital Health Alliance and play a part in its success are welcome to become members.
Photocredit: City of Zug, Andreas Busslinger
About the author
Beat Bachmann is the key contact partner for companies interested in setting up business in the Canton of Zug. As the head of what is, in effect, a «one-stop-shop», he makes every effort to help companies and their staff feel at home in Zug in the shortest possible time. He facilitates introductions to important contact persons in both the private and public sectors, and cultivates close ties with the local economy. Beat Bachmann holds a Master of Arts in Finance from the University of St. Gallen HSG. Before leading the Zug Economic Promotion office, he worked in management positions in national and international companies and markets for over 20 years. He has experience in business development, key account management, finance and project management in life sciences, consumer goods, real estate, and ICT industries.