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North America Switch Market Update

10.03.2012 // Michael Schwert // Switches & Relays

North American Switch Market 2012 Sales Down Slightly and Bookings 4% Lower than First Half of 2011

 
Total reported sales for all switch categories in North America for Q2 of 2012 were 8% higher than the previous quarter and 3% less than observed in the second quarter of 2011. Sales units for Q2’12 came in 4% better than Q1 and 8% below Q2 of last year.

The total booking dollars reported for all switch types in North America for Q2’12 ran 9% higher than last quarter and above Q2’11’s total bookings by 3%. The second quarter’s book-to-bill ratio for dollars was 1.033. Booking units in Q2 2012 were up 22% from Q1. The second quarter’s book-to-bill ratio for units was 0.959.

The second quarter versus the first showed total sales dollars up 8% and units grew 4%. All but tact and toggle experienced dollar and unit increases. Five of eight switch categories realized lower prices but the total ASP rose by 4% on a mix shift to higher priced switches. The comparison to the second quarter of last year yielded opposite results dollars down in six of eight categories and 3% in total. Units were down for five categories but in total by 9%. Pricing from a year ago was up in three of eight categories and in total by 4%, again due to a mix shift. Year to date results compared to last year shows a mix of half the categories rising and half falling in terms of dollars, units and price with little total change.

Sales Growth by Switch Category
  Q2 2012 Versus Q1 2012 Q2 2012 Versus Q2 2011 YTD CY 2012
Versus
YTD CY 2011
Category Dollars Units ASP Dollars Units ASP Dollars Units ASP
DIP 11.9% 21.6% -8.0% -22.9% -21.9% -1.2 -20.1% -21.3% 1.5%
Keylock 11.1% 1.1% 9.8% -26.6% -46.0% 32.2% -20.8 % -38.2% 28.3%
Push Button 10.1% 26.4% -12.9% -12.2% 30.3% -32.6% -13.6% 13.5% -23.9%
Rocker 12.9% 48.0% -23.7% 12.1% 31.5% -14.8% 9.2% 17.9% -7.4%
Slide 31.7% 26.2% 4.4% 4.5% 19.7% -12.7% 6.1% 24.7% -15.0%
Snap Action 13.3% 14.3% -0.8% -0.2% -14.2% 16.3% 2.7% -13.1% 18.2%
Tact -8.5% -9.4% 1.1% -9.0% -11.0% 2.2% 5.8% 5.6% 0.2%
Toggle -11.5% -6.7% -5.2% -5.5% -3.6 % -2.0% -1.5% -1.0 % -0.5%
Total 8.1% 3.6% 4.4% -3.3% -7.9% 5.0% -0.5% -0.2% -0.3%
   

When compared to last quarter total booking dollars increased 9% and units up by 22%. Dollars were up in all categories and units improved in six of eight types. Booked prices were up for half of the categories but down in total by 11% on a shift to lower priced product. Booked dollars in Q2 against a year ago were down for most categories but up in total by 3% on the strength of snap action switches. Units were also down for most categories and in total by 10%. Prices showed six of the eight categories increasing and the total moved 14% higher. Performance for the first half of the year shows the majority of categories down in both dollars and units. In total, dollars were down 4% and units 13% lower. Most types grew in booking price with the total going up 10%.

Bookings Growth by Switch Category
  Q2 2012 Versus Q1 2012 Q2 2012 Versus Q2 2011 YTD CY 2012
Versus
YTD CY 2011
Category Dollars Units ABP Dollars Units ABP Dollars Units ABP
DIP 12.3% 3.5% 8.5% -39.9% -41.0% 1.8% -34.7% -35.2% 0.6%
Keylock 11.5% -3.9% 16.0 % -32.2% -49.2% 33.4% -31.9% -41.7% 16.9%
Push Button 16.9% 13.3% 3.2% 17.0% 7.0% 9.3% 6.4% 0.9% 5.5%
Rocker 11.8% 65.7% -32.5% 9.7% 55.0% -29.2% 3.6% 17.4% -11.8%
Slide 12.0% 20.5% -7.1% -14.7% 2.2% -16.6% -18.6% -4.8% -14.7%
Snap Action 5.6% 26.1% -16.2% 16.5% -0.5% 17.0% 1.7% -6.2% 8.4%
Tact 12.5% 23.2% -8.7% -1.0% -15.1% 16.6% -7.6% -18.1% 12.8%
Toggle 3.4% -15.1% 21.7% -2.1% -3.5% 1.5% -9.0% -2.6% -6.5%
Total 8.9% 22.0% -10.7% 3.0% -9.8% 14.1% -4.3% -13.3% 10.3%

The graph below shows total quarterly indexed sales and bookings in dollars and units for the reported data since Q2 CY’10. All measures but booked units improved in Q2’10. Sales dollars improved in Q3 while the other three metrics moved down. All measures were lower in Q4 followed by improved bookings in Q1 with flat sales dollars and lower units. All but booked dollars improved in Q2 then all measures dropped sharply in Q3. Sales continued lower in Q4 while booking dollars jumped. The first half of this year saw improvement in all measures.

CY 2010/2012 Total Switch Sales and Bookings Index

Book-to-bill units have generally trended lower through Q4’10, then jumped back above 1.0 in Q1’11, followed by another trend lower to Q1 of this year and improvement in Q2. Book-to-bill dollars have shown a similar trend with more amplitude. The booking to selling price ratio had been trending lower until Q4 of last year, peaking in Q1 of this year and moved lower in Q2.

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Featured Contributor:
Michael Schwert

Michael Schwert

Michael is the founder of Cumulus, Inc. He has more than 30 years of marketing and sales as well as design experience in the electronic and electrical component industry. Prior to founding Cumulus, he was Director of Marketing for Cherry Electrical Products and held other marketing management positions with Panduit, BRK Electronics, and Ideal Industries.

Cumulus provides market information and consulting services for the global electronic components industry. The company offers three publications: Switch Tracks, a quarterly report with market information on component switches; the Relay Report, a quarterly report with market information on component relays; and Market Notes, a monthly report on sales, bookings, and business conditions in the relay and switch market. Cumulus also manages projects that help leading global suppliers in the relay and switch industry to develop new products and reach new markets.

Schwert provides MarketEYE with monthly articles that include timely and accurate market information for the electromechanical component sector of the electronics industry.

Cumulus Inc.

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