"Best overall package thanks to the Spirit of Zug"
As the head of the Business Contact Point in the canton of Zug, Beat Bachmann has excellent international connections and supports numerous companies with relocating every year. In an interview, he explains what Zug offers more than other cantons and why, despite the trend towards more home offices, the many new office buildings in the pipeline will find tenants and owners.
To person
Beat Bachmann is lic.oec. HSG and has management experience in the areas of business development, sales, finance and project management in domestic and foreign markets. His industry experience includes life sciences / medical technology, wholesale / sales of consumer goods, real estate, information and communication technology.
You are the head of the Business Contact Point in the Canton of Zug. How can you imagine a normal working day?
Beat Bachmann: Every day is different. As a "one-stop-shop", we primarily support and advise local companies on a wide variety of issues. This also includes support in finding office space. With over 100 company visits per year and by networking the companies with one another in the industry clusters, we help ensure that the companies can operate successfully in a business-friendly location. In addition, we support many companies each year in setting up in the canton of Zug.
How are the companies based in the canton with regard to the pandemic?
The Zug economy with its strong international ties is also affected and cannot escape the structural changes. The effects are to be mitigated thanks to the measures taken by the federal government and the canton. Due to the strong constitution of Zug's economy before the Corona crisis and the broad diversification, I estimate that the negative effects will be slightly lower compared to the rest of Switzerland. Nonetheless, our team was able to look after the same number of relocations in 2020 as in previous years.
In the Credit Suisse location ranking, Zug almost always ranks first – not least because of the low corporate income tax rate of 12 percent. What else do you offer more than other cantons?
We primarily offer the best overall package of excellent location conditions: These include long-term financial and political stability, tax and finance policy, great innovative ability, high availability of skilled workers in important industry clusters and efficient infrastructure. The fascinating living space and thus the quality of life are also very important. Last but not least, we often hear that economic friendliness – our “Spirit of Zug” – is very much valued.
What tasks does the Business Contact Point take on in site development?
In particular, we help ensure that the needs and requirements of the economy and companies are incorporated into the site developments. And when the properties are completed, we offer support in arranging the space for new tenants or buyers.
Does the site development show that the potential is being exhausted?
We are very happy that the landowners and site developers have made a significant contribution to the sustainable and qualitative development of the canton for decades. It is in line with the long-term strategy of the government council that Zug should remain an attractive place to live and live. There is still enough arable land. I therefore think that the canton of Zug can continue to develop in this way over many generations.
«Zug, Baar and Rotkreuz score points with the
Companies"
Several commercial buildings are under construction in the canton of Zug. In the wake of the pandemic, however, the trend is towards home offices. Still, are you confident that all of these projects can be brought to life?
Yes, I am confident that these surfaces will be absorbed. Switzerland and the canton of Zug are and will remain a leading international economic area. In the case of new settlements, the availability of ready-to-move-in space is an important location factor. It is difficult to estimate the long-term impact of Covid-19 on office space demand. The trend towards more home offices is countered by a trend towards more space per capita, as well as co-working spaces / business centers.
Besides Zug, which city in the canton is the most popular location for companies?
On the one hand, the Lorzen plain (valley communities) has had the most companies and jobs for decades. Since the canton records around 40% train commuters on working days, the proximity to train stations with IC and express train connections is playing an increasingly important role. Accordingly, along with Zug, Baar and Rotkreuz have been the most popular locations in recent years; Cham follows behind.
What makes the canton of Zug attractive as a place to live?
Zug offers a good international infrastructure, excellent schools and political stability. The standard of living is high and the living spaces are intact. There are lakes, mountains and diverse landscapes in the smallest of spaces. Zug therefore offers an outstanding quality of life and the proximity to central Switzerland and Zurich.
How do you assess the current demand on the housing market?
It is consistently high in the canton of Zug. At the same time, the vacancy rate in the canton of Zug is only increasing minimally.
How do you rate the building potential in the housing market?
Since we at the Business Contact Point primarily deal with companies and, accordingly, with office and commercial space, I am not an expert on the housing market. However, I observe that many apartments have been built unchanged for decades and that they are constantly finding residents. As the smallest full canton in Switzerland in terms of area and due to our sustainable growth strategy mentioned above, we will continue to see a high proportion of commuters in the future.
