“The central location is a big plus”

Luzern, April 2023

Andreas Zettel is Head of Corporate Development and Deputy Director of the Economic Development Department of the Canton of Lucerne. In this interview he talks about current projects, the challenges facing businesses and his work.

Mr. Zettel, what are the goals of the Lucerne Economic Development Agency?

We pursue three main goals. The first is exciting and good jobs for our population. The second is to generate tax revenue for the services provided by the canton and municipalities. And the third is the positive perception of Lucerne as a business location, both internally and externally.

What are your responsibilities as Head of Corporate Development?

As Head of Corporate Development, my main focus is on the existing companies of the Canton of Lucerne. We have just over 30,000 companies and support them in developing positively. Most of our projects with companies revolve around their location. For example, when a company grows, its needs change. In this context, questions about expansions or a change of location may arise. What are currently the biggest challenges facing companies? Issues around limited resources such as building land and commercial space often pose challenges to businesses. Another major issue is currently the shortage of skilled workers and labour. There are currently major uncertainties, such as the Ukraine war or inflation. This also includes issues such as energy prices and supply bottlenecks. These challenges show us once again how dependent we are on what happens outside Switzerland.

What are currently the most important construction projects in the canton of Lucerne?

The entire canton of Lucerne has a high level of construction dynamism. A lot is currently going on in the two development focal points of Lucerne North and Lucerne South. The new central cantonal administration is being built in the Smart City Lucerne North. In Lucerne South, many projects are already underway, such as the Nidfeld site or the Pilatus Arena with the Pilatus Tower, Lucerne’s tallest skyscraper. The Horw campus of the Lucerne University of Applied Sciences and Arts will be expanded and renovated by the end of this decade.

What makes Canton Lucerne an attractive place to live?

In Canton Lucerne there is something for everyone. We have great places to live and very different regions and landscapes. We have a great city with a wonderful cultural offer. We have lakes, mountains and a tourist offer that is also available to the population. All this makes Lucerne an attractive overall package. Moreover, Lucerne is a manageable place in terms of size. You can integrate well here, we have many clubs and great events. Overall, the quality of life in Lucerne is outstanding.

What about free and affordable housing in the
Canton of Lucerne?

Housing is also an issue in Lucerne. We have a vacancy rate of just under one percent. That is an average value: some communities have practically no vacant flats, in others there are definitely offers. It’s the same with prices: while housing in the city of Lucerne, for example, is relatively expensive, there are also municipalities where there are cheaper offers. At the same time, a lot is being built. That is also the most important thing at the moment: that construction projects are realised and new flats come onto the market quickly.

Besides the city of Lucerne, which municipalities are particularly popular with companies?

We have 80 great municipalities in the canton of Lucerne, and each municipality has its own strengths. In terms of the number of companies, the large municipalities in the agglomeration such as Emmen, Kriens, Horw and Ebikon are important locations in addition to the city of Lucerne. Sursee, the second centre of the canton, is also attractive for companies due to its location. But there are also many great companies in regions such as Willisau or Hochdorf, especially in industry. This broad and diverse economic structure is one of Lucerne’s strengths.

Why should a company come to Lucerne instead of Zurich, Bern or Basel?

The central location in the middle of Switzerland is a big plus. You can get to Basel or Zurich quickly, but also to Italy or Germany. In addition, we have very attractive corporate taxes, a broad educational landscape and a good skilled workforce.

Where does Canton Lucerne stand in terms of digitalisation?

I look at the topic primarily from the perspective of the economic structure. For example, we have many IT service providers who specialise in digitalisation. For most companies, the topic has been around for a long time. But digitisation doesn’t stop there. The transformation into a digital business model is ongoing, and new topics are constantly being added. We also take up these topics. Last year, for example, we co-founded a hub for artificial intelligence. This makes the topic of AI visible and helps companies in its application. We also support companies in networking with suitable partners for digitalisation projects.

As an economic developer, you have a relatively young profession. What distinguishes this profession for you?

I come into contact with an incredible number of interesting people – be it from companies, from politics or from the administration. In addition, we are at the source of new ideas and projects. Professionally, this job also has many facets: from business administration to spatial planning and real estate to politics and communication. For me, it is a privilege to be able to do this work.

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