Schaffhausen – an economic success story
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 and today Schaffhausen can look back on an economic success story.
The new high-rise buildings on the former Alusuisse site in Neuhausen am Rheinfall came to life at the beginning of 2024. The flats are occupied, the shops are open and work is underway in the 7000m2 of office and laboratory space. 100 years ago, an aluminium plant stood on what is now the Rhyfall Village. After the Second World War, a research centre for materials technology was established. Decades later, plans grew for new living and working space – which have now been realised. The Schaffhausen steel foundry has also undergone a similar transformation process: instead of heavy industry, there are flats, a school, commercial space and offices. Strategies are developed, patents are managed and markets are cultivated all over the world. Today, people and companies are once again putting down roots in the canton of Schaffhausen. At the end of the 1990s, the reality was different.
Joining forces to emerge from 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. Eleven per cent of all jobs were lost – more than in any other canton. Those who could, moved away. To turn the tide, the business associations launched the WERS project – Economic Development Region Schaffhausen. The city and canton supported it. 150 demands served as the basis for groundbreaking decisions in Schaffhausen politics in 1997.
Active location promotion as the key
One central measure was the creation of a cantonal economic development agency. The mission was clear and still applies today: to publicise 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 Development Agency is the central point of contact and information centre between business, politics and administration. The goal: competitive industrial companies and SMEs, globally orientated 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 favour of the location.
Improving the “Schaffhausen product”
Particularly in the early days, some companies decided against Schaffhausen because the location did not fulfil their requirements. There was a lack of centralised 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. This includes the establishment of the ISSH international school, the ITS Industry and Technology Centre to promote innovation and technology among SMEs, the go-tec! Laboratory for future STEM specialists. The introduction of the half-hourly service to Zurich main station, the direct connection to the airport and the expansion of the A4 motorway were also supported. In the canton, the regional S-Bahn railway between Trasadingen and Thayngen was expanded to complement the regional buses. The gradual reduction in taxes for individuals and companies was another key factor in favour of the location. Many projects have been successfully realised. Others are still under discussion. These include a university programme tailored to the needs of industry and a campus for innovation and technology.
From product development to supply development
On the property side, these developments in the canton have led to an increasing demand for offices, commercial space and living space. Various central sites have been developed over the last two decades. These include the Landhaus and Urba(h)n developments near the railway station in the town of Schaffhausen and the transformation of the former steel foundry into a residential and working quarter close to the town centre. In Neuhausen am Rheinfall, the development along Zentralstrasse, combined with the residential construction activity around the Industrieplatz and the gradual opening up of the SIG site, were decisive factors. While this area is still in the process of transformation, the Rhyfall Village has been filling with life since the beginning of 2024 – thanks to jobs and new residents.
25 years of joint efforts
25 years ago, the course was set jointly in the canton of Schaffhausen: 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 the “next.” development strategy in 2022. It is clear that the canton is developing dynamically as a location. Today, not only are the windows of the new flats in converted factories illuminated, but the entire business location and living space shines 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. Continuing this success story is both a mission and a motivation for the committed forces in the canton.