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25 years of economic promotion – An economic success story

April 8, 2024

Economic crisis, negative mood, lack of prospects: In the 1990s, the Canton of Schaffhausen was caught in a negative spiral with high unemployment, emigration and falling tax revenues. Thanks to an active location policy, the story took a different course. Today, Schaffhausen can look back on an economic success story.

Life has returned to the new high-rise buildings on the former Alusuisse site in Neuhausen am Rheinfall. The windows are lit, the first stores have moved in and work is underway in the 7000 m2 of office and laboratory space. Just 100 years ago, there was an aluminum plant here. After the Second World War, a research center for materials technology was established. Decades later, plans for new living and working space grew. The Schaffhausen steel foundry has also undergone a similar transformation process: instead of heavy industry, there are apartments, a school, commercial space and offices. Strategies are being developed, patents managed and markets cultivated all over the world. Today, people and companies are once again putting down roots in Schaffhausen. At the end of the 1990s, the reality for Schaffhausen was different.

Joining forces to overcome the crisis

Structural change hit the industrial Canton of Schaffhausen with full force: Within just a few years, the corporate landscape changed drastically and tax revenues collapsed. 11 percent of all jobs were lost - more than in any other Canton. Those who could, moved away. To turn the tide, the "kantonale Gewerbeverband" the WERS project - Economic Development Region Schaffhausen. The industry association supported the project from the outset, as did other employers' associations and the city and Canton of Schaffhausen. 150 demands, drawn up by 150 people in 16 working groups, served as the basis for groundbreaking decisions in Schaffhausen politics in 1997.

Economic Promotion as key

One key measure was the creation of the Economic Promotion Canton of Schaffhausen. The mission was clear and remains so to this day: to raise awareness of the business location, attract new companies and support existing companies in maintaining jobs. In addition to providing impetus for the continuous improvement of the framework conditions for the economic development of the canton, the Economic Promotion Canton of Schaffhausen is the central point of contact and information between business, politics and administration. The goal: competitive industrial companies and SMEs, globally oriented service providers, more tax revenue!

The companies came. The first production company, "Wunder-Baum", was founded in 1998 and "Tyco" was the first US multinational with a headquarters. To date, more than 600 other companies have settled here. They have created around 2,800 new jobs and, thanks to a lot of additional tax revenue, scope for investment in the quality of life.

Improving the "Schaffhausen product"

Particularly in the early days, some companies decided against Schaffhausen because the location did not meet their requirements. There was a lack of central offices, generous living space, an international school and good transport links to the airport. In order to change this, the "Schaffhausen product" was gradually improved and the attractiveness of the location was promoted with the help of business development. These include the ISSH international school, the ITS – Industrie &
Technozentrum
to promote innovation and technology among SMEs, the go-tec! Labor for future STEM specialists, the regional S-Bahn connection between Trasadingen and Thayngen, the Urba(hn) center development at Schaffhausen railroad station and the opening up of the SIG-Areal in Neuhausen combined with residential construction activity around the industrial site. The gradual reduction in taxes for individuals and companies was also key for the location.

Many projects have succeeded and been implemented, while some projects such as the cross-border business park (GGP) between Neuhausen and Jestetten have failed. The Hochrhein-Bodensee-Express is finally picking up speed after a long time, while other topics are still under discussion: These include a university offering tailored to the needs of industry, a campus for innovation and technology, the upgrading of the Rhine Falls and various ideas from PASS.

25 years of joint efforts

The course was set 25 years ago: Business and politics joined forces and began an active location development policy with common objectives. After WERS came the visions for Schaffhausen in 2008 and today the "next." development strategy.

It is noticeable that many things are going well in our Canton. Today, not only are the windows of the new apartments in converted factories lit up, but the entire business location and living space is shining in a different light. In an intercantonal comparison, Schaffhausen has undergone a unique development: no other Canton has improved so much in the comparison of competitiveness indicators (UBS 2023). Schaffhausen has not only become a popular location for international companies, but also for people from Switzerland, as the intercantonal migration balance shows.

This is no coincidence, but the result of targeted measures and joint efforts supported by strong economic development. The development is visible and tangible - but not a matter of course. Just like 25 years ago: If you stand still and fail to recognize the developments of the times, you lose! Continuing this success story should be both a mission and motivation for all committed forces in the canton. As an economic development agency, we will do our best to achieve this. 

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