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North American Switch Market Finishes First Half with Sales Up 6% and Bookings 4% Better than 2012

10.09.2013 // Michael Schwert // Switches & Relays

Total reported sales for all switch categories in North America for Q2 of 2013 were 5% higher the previous quarter and 5% better observed in the second quarter of 2012. Sales units for Q2 were 15% more units sold in Q1 2013 and 8% better than Q2 of 2012.

The total booking dollars reported for all switch categories in North America for Q2 2013 ran 5% more than the previous quarter and above Q2 2012’s total bookings 4%. The second quarter’s book-to-bill ratio for dollars was 1.013. Booking units in Q2 2013 were up 27% from Q1. The first quarter’s book-to-bill ratio for units was 1.101.

The second quarter versus the first showed total sales dollars up 5% and units higher by 15%. Half the categories experienced dollar increases. Six of eight switch categories realized higher unit sales while prices fell in five categories with total ASP down by 8%. The comparison to the second quarter of 2012 yielded better results dollars up in five of eight categories and 5% in total. Units were up for five categories and better in total by 14%. Pricing from a year ago was down in five of eight categories and in total by 8%. Year-to-date versus last year, dollars are up 6% and units 8% better with price lower by over 2%.

Sales Growth by Switch Category

  Q2 2013 Versus Q1 2013 Q2 2013 Versus Q2 2012 YTD CY2013 Versus.
YTD CY 2011
Category Dollars Units ASP Dollars Units ASP Dollars Units ASP
DIP -0.5% 6.9% -7.0% 8.2% 10.6% -2.2 14.5% 17.5% -2.9%
Keylock -10.4% 1.3% -11.6 % -20.0% -0.9% -19.4% -11.0% -1.0% -10.1%
Push Button -15.6% -12.4% -3.6% -3.6% -17.7% 17.2% 10.4% -1.7% 11.3%
Rocker 11.9% 1.1% 10.7% -7.2% -6.3% -1.0% -8.3% -7.3% -1.0%
Slide 0.9% -1.3% 2.2% 9.4% 5.7% 3.5% 23.9% 18.8% 4.6%
Snap Action 12.7% 36.5% -17.4% 0.3% 18.5% -15.3% 0.6% 9.5% -8.2%
Tact 11.1% 14.0% -2.5% 50.6% 22.7% 22.8% 36.8% 9.5% -37.6%
Toggle -2.8% 4.4% -6.9% 12.9% 23.9% -8.9% 7.5% 17.1% -8.1%
Total 5.5% 14.6% -8.0% 4.6% 14.1% -8.3% 5.9% 8.3% -2.5%

When compared to last quarter total booking dollars and units increased 5% and 27%. Dollars were up in half of categories and units rose in five of eight categories. Booked prices were down for a majority of categories and down about more than 17% in total. Booked dollars in Q2 against the same quarter of 2012 were up for half of the categories and in total by just under 3%. Units were up for most categories and by over 31% in total. Prices showed six of the eight categories decreasing and the total moved almost 22% lower. So far this year dollars are up 4% with units 26% better than the same period a year ago. The total ABP is 19% lower with five of eight categories down.

Bookings Growth by Switch Category

  Q2 2013 Versus Q1 2013 Q2 2013 Versus Q2 2012 YTD CY2013 Versus
YTD CY 2012
Category Dollars Units ABP Dollars Units ABP Dollars Units ABP
DIP 8.3% 5.2% 3.0% 4.9% 0.5% 4.4% 16.5% 9.6% 6.8%
Keylock -25.5% -14.6% -12.7 % -29.4% -10.0% -21.6% -12.9% -4.2% -9.2%
Push Button -3.3% -0.1% -.3.3% -17.8% -6.0% -12.3% -9.5% -0.1% -9.4%
Rocker -0.8% 6.0% -6.4% 3.3% 0.3% 3.0% 7.6% 1.4% 6.1%
Slide 7.8% 35.4% -20.4% 17.0% 20.4% -2.8% 19.2% 14.4% 3.8%
Snap Action 17.3% 49.4% -21.5% -0.9% 11.0% -10.7% -5.7% 3.4% -9.7%
Tact 1.3% 28.7% -21.3% 50.6% 55.7% -.3.3% 58.5% 52.8% -48.4%
Toggle -17.3% -16.0% -1.5% -16.0% -6.3% -10.4% -5.7% -5.7% -0.8%
Total 5.0% 27.2% -17.5% 2.6% 30.9% -21.9% 4.4% 26.5% -19.2%

The graph below shows total quarterly indexed sales and bookings in dollars and units for the reported data since Q2 CY 2011. All measures set two-year highs Q2 0f 2013 and have been improving over the last three quarters.

chart-1.jpg

Book-to-bill units have generally trended lower through Q4 of 2011, and then improved through Q2 2013. Book-to-bill dollars have been above except for 3 of the last eight quarters. The booking to selling price ratio had been trending lower since Q4 of 2011 and is now below 1.0.

chart-2.jpg

Booking prices peaked in Q1 of 2012 and have trended lower since. Selling prices have followed a similar but slightly lower path reaching an apex Q3 of 2012 then moving lower the last three quarters.

chart-3.jpg

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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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