North American Switch Market Ends First Half of 2014 with Sales Down 2% and Bookings 6% Lower than Q1 2013
11/18/2014 //
Total reported sales for all switch categories in North America for Q2’14 were 1% less than the previous quarter and 5% the second quarter of 2013. Sales units for Q2’14 totaled 4% above units sold in Q1’14 and 4% better than Q2’13.
The total booking dollars reported for all switch categories in North America for Q2’14 ran 6% higher than the previous quarter and below Q2 2013’s total bookings by 6%. The first quarter’s book-to-bill ratio for dollars was 1.004. Booking units in Q2’14 came in up 6% from Q1. The first quarter’s book-to-bill ratio for units was 0.941.
The second quarter versus the first showed total sales dollars slipped 1% and units 4% higher. This was driven decreases in key lock, slide and snap action switches. Six of eight switch categories realized better unit sales with a 4% total increase. Prices were down 5% in total with over half the categories improving. The comparison to the second quarter of 2013 yielded similar results dollars down in five of eight categories and 5% in total. Units were up for half the categories and better in total by 4%. Pricing from a year ago was down in four of eight categories and in total by 8%. Year to date versus a year ago has dollars lower by 2% in total with losses in all but three categories. All in, units improved 8% driven by strong tact performance. The ASP lost 10% with half the categories down.
Sales Growth by Switch Category
| Q2 2014 Versus Q1 2014 | Q2 2014 Versus Q2 2013 | YTD CY2014 Versus. YTD CY 2013 |
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| Category | Dollars | Units | ASP | Dollars | Units | ASP | Dollars | Units | ASP |
| DIP | 14.9% | 12.6% | 2.0% | 38.3% | 47.6% | -6.3 | 29.0% | 44.0% | -10.5% |
| Keylock | -5.1% | 11.2% | -14.7 % | -3.6% | -6.7% | 3.3% | -6.5% | -10.9% | 4.9% |
| Push Button | 15.7% | 7.5% | 7.6% | 8.6% | -16.3% | 29.7% | -7.3% | -24.5% | 23.3% |
| Rocker | 2.7% | -11.8% | 16.6% | 2.2% | 0.7% | 1.5% | -4.2% | -7.1% | 3.2% |
| Slide | -3.8% | 3.2% | -6.8% | -2.2% | 11.9% | -12.6% | 0.1% | 9.4% | -8.5% |
| Snap Action | -19.5% | -16.8% | -3.2% | -14.9% | -28.8% | 19.5% | 1.2% | -9.5% | 10.1% |
| Tact | 8.1% | 4.9% | 3.1% | -11.2% | 12.9% | -21.3% | -10.0% | 17.5% | -23.4% |
| Toggle | 10.8% | 2.4% | 8.2% | -9.6% | -3.8% | -6.1% | -15.2% | -1.6% | -14.0% |
| Total | -0.8% | 4.5% | -5.1% | -5.0% | 3.7% | -8.4% | -2.1% | 8.4% | -10.0% |
When compared to last quarter total booking dollars and units increasing 6%. Dollars and units were up in six of eight categories. Booked prices were unchanged despite losses in over half the types. Booked dollars in Q2 against the same quarter of 2013 were down for half the categories and in total by 6%. Units were up for most types and but down 11% in total driven by snap action and tact switches. Prices were lower for five of the eight categories but moved 6% higher on the strength of snap action and tact categories. Bookings year to date versus 2013 were down in total dollars, units and price. Dollars are down 6% with losses in all but two categories. Units were off by 3% and in half of categories. Booking price slipped 4% with over half the categories down.
Bookings Growth by Switch Categories
| Q2 2014 Versus Q1 2014 | Q2 2014 Versus Q2 2013 | YTD CY2014 Versus YTD CY 2013 |
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| Category | Dollars | Units | ABP | Dollars | Units | ABP | Dollars | Units | ABP |
| DIP | 18.1% | 17.0% | 0.9% | 37.3% | 58.4% | -15.3% | 28.9% | 50.6% | -14.4% |
| Keylock | 50.7% | 141% | -37.5 % | 14.0% | 19.6% | -4.7% | -19.0% | -22.1% | 4.5% |
| Push Button | 3.2% | 15.1% | -10.4% | -1.1% | 10.0% | -10.1% | -4.2% | 2.7% | -6.8% |
| Rocker | 4.2% | 5.5% | -1.3% | 4.1% | -0.6% | 4.8% | -1.7% | -12.8% | 10.7% |
| Slide | -5.3% | -2.4% | -3.0% | 4.0% | 13.4% | -8.3% | 11.0% | 32.1% | -17.4% |
| Snap Action | -2.7% | 8.7% | -10.5% | -19.8% | -30.3% | 15.1% | -12.3% | -19.9% | 6.9% |
| Tact | 13.3% | -3.7% | 17.6% | -10.2% | -17.7% | 9.1% | -14.9% | -5.6% | -11.2% |
| Toggle | 1.8% | 1.2% | 0.5% | 8.2% | 11.1% | -2.6% | -2.9% | 0.8% | -3.6% |
| Total | 5.8% | 5.8% | 0.0% | -5.9% | -11.3% | 6.1% | -6.2% | -3.4% | -4.0% |
The graph below shows total quarterly indexed sales and bookings in dollars and units for the reported data since Q2 CY 2012. All measures set two-year highs Q2 and Q3’13 and had been improving over the previous three quarters. In Q3, sales measures continued to improve as booking measures eased down the next three quarters and improved in Q2 of this year. Sales measures dropped in Q4 of last year but rebounded in Q1’14 only to slip in Q2.
Book-to-bill units have generally trended higher since the second quarter of 2012 until Q3 of last year when then have trended lower. Book-to-bill dollars have oscillated above and below 1.0 over the last two years. The booking to selling price ratio had been trending lower until reversing in Q3’13 and is now above 1.0 for the last two quarters.
Indexed booking prices peaked in Q2’12 and trended lower until moving higher the last three quarters. Indexed selling prices reached an apex Q3’12 then mostly moved lower.
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.