1. Europe’s Watch Production Landscape
High-Level Production Picture
Europe remains historically central to watchmaking, with a concentration of production in Switzerland, followed by smaller volumes in Eastern European countries such as Poland and Czechia.
In 2024 Europe produced an estimated around 19–21 million watches in total, valued at roughly $27.7–28 billion in exports, after a recent downturn in unit output following an earlier growth phase. Switzerland alone accounted for about 74 – 80 % of total European production volume in that year. IndexBox+1
However, much of this volume figure blends both lower-segment (entry to mass market) watches and higher segments. When examining the production landscape, it’s important to differentiate segment strategies because they have distinct implications for employment and industrial structure.
Swiss Watch Production: Luxury vs Lower Segment
Switzerland is globally synonymous with watchmaking quality, particularly in the luxury and premium segments. But there is also a lower-segment niche within Swiss manufacturing:
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Swatch Group, the largest Swiss watch-making conglomerate, produces Swatch brand timepieces that historically targeted the low-cost, high-volume segment as “second watches” — affordable, plastic quartz models developed during the 1980s quartz crisis to regain market share from Asian competitors. Wikipedia
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These watches are mechanized, often plastic or simple analog quartz, and constitute some of the lowest price points still produced in Switzerland. Their high volumes historically helped sustain a broad base of production employment, including assembly, movement supply (e.g. ETA), logistics, and support services.
But entry-level Swiss production has waned relative to luxury and premium segments, where higher margins and brand desirability prevail. Swiss exports are weighted heavily toward premium mechanical watches, and production volume has declined over the last decade even as value remains strong (reflecting fewer but more expensive units). IndexBox
Other European Production Hubs
Outside Switzerland:
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Poland and the Czech Republic host much of the EU’s volume-based watch assembly operations, primarily producing lower-priced analog and quartz watches for European and global markets. In 2024, Poland accounted for roughly ~43 % of EU unit production among EU members, dwarfing other producers. IndexBox
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Smaller producers in Slovakia and Hungary also contribute lower-margin watch assembly volumes. These are often OEM/ODM partners for global fashion brands or non-luxury models, made at scale to serve mass markets rather than luxury connoisseurs.
Together, this non-Swiss production represents the core of Europe’s “lower segment” watch output, distinguished by relatively simpler mechanisms, greater automation, and higher volume production.
2. Characteristics of Lower-Segment Watch Production
Production Methods
Lower-segment production in Europe relies predominantly on:
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Quartz movements and simplified analog designs, which are cheaper and easier to manufacture than purely mechanical high complications.
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Greater use of automated assembly, and supplier networks that specialize in components like dials, straps, cases, and battery mechanisms rather than bespoke mechanical finishing. Rawshot.ai
This mix enables some cost competitiveness compared to high-end artisanal manufacturing — though European labor costs generally remain high compared to Asia, which is a core competitor in the low-price range (e.g., China or Southeast Asian production hubs).
Market Positioning and Competition
Lower-segment watches within Europe compete in a crowded global market where:
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Asian brands (Seiko, Citizen, Casio, numerous Chinese makers) offer very low price points with efficient production.
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Smartwatches (Apple, Samsung) continue to eclipse traditional quartz at very low prices by offering digital features.
European lower-segment makers must thus differentiate on brand heritage, quality perception, or design more than on price alone.
3. Employment and the Job Market
The structure of employment in European watch production varies with segment:
Swiss Sector Employment
The Swiss industry directly employs around ~65,000 people as of 2025, a crucial component of regional economies in cantons like Jura, Neuchâtel, Bern, and Geneva. When indirect roles in suppliers and services are included, nearly 100,000 jobs are linked to watchmaking. SWI swissinfo.ch
But even this strong footprint is under pressure:
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Recent data shows a decline in Swiss watch industry employment of about 1.3 % in 2025 (~835 jobs lost), the first annual drop since the post-COVID rebound. Hodinkee
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Some companies have utilized short-time work schemes to avoid layoffs — a sign of a market adjusting to slowing global demand, particularly in lower/mid-end segments where price-sensitive buyers have pulled back.
Why job losses in Switzerland? Although Swiss production is weighted toward premium products, the mid-lower tier brands within larger groups (including some Swatch Group entry lines and Richemont mid-range) are hit hardest when economic uncertainty curtails discretionary spending. Reddit
Unlike in some other industries where scaling up production also scales up employment, watchmaking is capital-intensive and increasingly automated. Thus employment growth is not proportional to production volumes, especially in lower-end assembly lines.
Eastern European and EU Watchmaking Jobs
In countries like Poland and Czechia, lower-segment production supports jobs in:
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Assembly lines
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Component stamping and finishing
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Supply chain logistics
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Quality control
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Machine operation roles
These jobs are more volume-based and less reliant on artisanal skill than Swiss haute horlogerie. They offer a stable employment base particularly in regions seeking industrial diversification.
However, job security in this segment depends on global competitiveness. European mass production struggles against Asian low-cost manufacturing in both labor and materials. If cost pressures rise (e.g., wage inflation, energy costs), some EU producers may relocate operations — putting lower-skilled jobs at risk unless offset by automation that further reduces labor needs.
Skill Mix and Apprenticeships
Lower-segment production generally calls for:
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Machine technicians
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Assembly line operators
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Quality assurance inspectors
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Logistics and supply chain coordinators
Switzerland and Germany also maintain vocational training systems for watchmaking — but here the focus is on higher precision skills (mechanics, microengineering) rather than mass production tasks. Rawshot.ai
Impact on job market segmentation:
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Artisanal watchmaking jobs (precision mechanical assembly, finishing) remain stable but niche and often tied to luxury segments.
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Mass assembly roles are more plentiful but more vulnerable to automation or relocation pressures.
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Service and repair markets (after-sales) remain important employers across segments, especially where brand support is local.
4. Broader Economic Impacts
Regional Economies
Watchmaking remains critical in several European regions:
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In Swiss cantons, it’s a pillar of industrial employment and cultural heritage.
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In some Eastern European regions, watch assembly helps anchor industrial manufacturing jobs outside automotive or electronics sectors.
Declines in production or demand — especially in mid-range products — can have multiplier effects on regional employment, affecting suppliers, logistics, and ancillary services.
Global Competition
European lower-segment production contends with:
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Asian mass manufacturers with lower labor costs.
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Technology shift toward smart wearables that replace traditional quartz watches.
This competition pressures companies to innovate, improve efficiency, or shift toward higher-value segments — all of which shape job quality and quantity.
5. Conclusion
Lower-segment watch production in Europe serves as both a volume base and entry point for employment in an industry long known for its craftsmanship. Yet this segment:
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Operates with thin margins and high competition from Asia.
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Supports jobs mainly in assembly and production lines, increasingly automated.
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Faces persistent structural challenges that limit employment growth relative to high-end luxury watchmaking.
European employment in watch production remains significant but uneven: Swiss luxury jobs are stable yet exposed to economic cycles, while volume-based roles in Eastern Europe help sustain manufacturing communities but face competitive pressures. The future landscape will likely see further specialization, automation, and a shift toward high-value roles — with concurrent impacts on the job market in lower-segment production areas.
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