North American Relay Market Improves for a Second Quarter

03.02.2010 // Posted by: Michael Schwert // Posted in: Articles, Switches & Relays

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North American relay market sales in Q4 were up 14% versus Q3, a second consecutive quarter of improvement. Fourth quarter bookings also rose 8%, slowing from the 49% jump the previous quarter. The year ended with 2009 sales down 28% from 2008.

Q4 Market Overview

Total reported sales for all relay types in North America for the fourth quarter of 2009 was 14% more than the previous quarter and 8% less than the same quarter of 2008. Sales units for Q4 2009 were 12% higher than units sold in Q3 and 1% fewer than Q4 of last year.

The total booking dollars reported for all relay types in North America for Q4 2009 were more than the previous quarter by 8% and better than Q4 2008 by 38%. The first quarter’s book-to-bill ratio for dollars was 1.279. Booking units in Q4 2009 ran 16% above Q3. The second quarter’s book-to-bill ratio for units was 1.471.

The fourth quarter of 2009 was stronger in dollars and units for both categories and in total compared to Q3. Solid state had loses in ASP while electromechanical increased. Comparisons to the same quarter last year show electro-mechanicals down in all measures while solid state improved. Year-to-year totals show significant loses for all measures except solid state selling prices.

Sales Growth By Relay Type

A sign of an improving future, total booking dollars and units were up 8% and 16% from the previous quarter. The comparisons to Q4 of 2008 show the opposite result of sales with electro-mechanicals up significantly and solid state down in dollars and units. Like sales, the year-to-year totals show significant loses for all measures except solid state selling prices.

Sales Growth By Relay Type

The graph below shows total quarterly sales and bookings in dollars and units for the reported data. Sales dollars and units were at or near period highs in Q3 of 2008, fell to an all time Relay Report low in Q2 of 2009, and then recovered in Q3 and Q4. Booking dollars and units also set a two year high in Q3 of 2008 then fell dramatically the next two periods, recovered a little in Q2, and more so in Q3 and Q4.

The overall selling and booking prices have generally moved lower over the past two years. The booking price has been below the selling price for all but one quarter during this period.

Note the price graph above has trends included for the average selling and average booking prices. All of the price graphs will include either linear or polynomial regression analysis to show the trend of prices.

Book-to-bill dollars and units rebounded above 1.0 in Q2 and continued upward in Q3. In Q4 book-to-bill units continued upward as dollars retreated some. The ratio of average booking to selling prices flirted with 1.0 in the first quarter of 2009 then moved lower in Q2, remained nearly unchanged in Q3, and moved near two lows in Q4.

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