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2013 European Switch Market Sees Sales up 2% and Bookings 9% Higher than 2012

05.05.2014 // Michael Schwert // Switches & Relays

Total reported sales for all switch categories in Europe for Q4 of 2013 were 5% below the previous quarter and 9% better than the fourth quarter of 2012. Sales units for Q4 2013 ran 6% below Q3 and 6% better than Q4 2012.

The total booking dollars reported for all switch catgories in Europe for Q4 2013 came in 3% above the previous quarter and better than Q4 2012 by 9%. The fourth quarter’s book-to-bill ratio for euros was 1.103. Booking units in Q4 2013 ran 14% better than Q3. The fourth quarter’s book-to-bill ratio for units was 1.086.

The fourth quarter versus the third shows lower euros and units for all types. In total euros were down 5% and units 6%. The average selling prices (ASP) decreased in over half the categories but was up 1% in total on a mix shift to higher priced switches. Q4 compared to a year ago shows gains in euros for four of eight categories and a 9% rise in total. Units were up 17% in total with increases in all eight categories. ASPs decreased for seven of the eight categories and 7% in total. Year-to-date sales euros were up slightly with gains in over half the categories while units were up 6%. Selling prices were down for all categories and over 3% in total.

Sales Growth by Switch Category

When compared to the third quarter, total bookings were up in euros for six of eight categories and in total euros 3%. Units moved higher in six categories and 14% in total. The average booking price fell for three categories and 9% in total due to a mix shift to lower priced switches. Bookings in Q4 versus 2012 were up in euros for four categories and 12% in total. Units were up 22% in total with all but DIP and keylock increasing. The total average booking prices compared to the same period the previous year were down 8% in total and in six of the categories. Comparing 2013 to 2012 shows booking euros up 9% and units up 11% with the average booking price down slightly.

Bookings Growth by Switch Category

The graph below shows total quarterly indexed sales and bookings in euros and units for the reported data since Q1 CY 2012. All measures improved in Q1 of 2012 but moved lower again through the rest of the year. The first quarter of 2013 had a nice move up for all metrics. In the second quarter sales improved slightly as bookings decreased followed by a decrease in all measures in Q3. Q4 saw sales decrease and bookings improve.

CY 2011/2013 Total Reported European Switch Sales & Bookings

Book-to-bill euros generally declined to a low in Q3 of 2012 improved the next two quarters only to move down in Q2 and Q3 of last year then improved Q4. The unit ratio had a similar but lower path than the euros. The ABP-to-ASP ratio has been above 1.0 for the last two years.

CY 2011/2013 Total Reported European Switch Market Ratios

For the period, indexed sales and booking prices generally trended higher but may now be heading lower.

CY 2011/2013 Total Reported European Switch Price Index

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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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