North American Relay Market Ends Q3 of 2014 with YTD Sales up 3% and Bookings Unchanged from 2013
01/06/2015 //
Total reported sales for all relay categories in North America for the third quarter of 2014 were 2% higher than reported in the previous quarter and up 8% from the same quarter of 2013. Sales units for Q3 2014 ran 1% below Q2 and 3% more than Q3 of 2013.
The total booking dollars reported for all relay categories in North America for Q3 2014 came in less than the previous quarter by 10%, and up 13% from Q3 2013. The third quarter's book-to-bill ratio for dollars was 0.881. Booking units in Q3 2014 ran 1% below Q2. The second quarter's book-to-bill ratio for units was 0.886.
In the third quarter of 2014 sales were up in dollars and units down for EMRs while SSRs grew for both. ASPs were up for EMRs and in total. In total dollars increased 2% and units slipped 1% while the ASP was 4% higher. When compared to the third quarter of last year EMRs and SSRs were up in dollars and units. ASPs were up slightly for EMRs and down significantly for SSRs. In total dollars increased 8% and units 5% higher with an ASP gain of 3%. Year to date EMR and SSR dollars were higher and EMR's units lower. In total, dollars were better by 3% and units up just under 1%. Total ASP was up about 2% on the strength of EMRs.
Sales Growth by Relay Category
|
Q3 Versus Q2 CY 2014 | Q3 2014 Versus Q3 2013 | YTD CY 2014 Vs. YTD 2013 | ||||||
Category |
Dollars | Units | ASP | Dollars | Units | ASP | Dollars | Units | ASP |
Electro-mechanical |
0.7% | -1.7% | 2.4% | 5.8% | 2.9% | 2.8% | 1.0% | -1.1% | 2.0% |
Solid State |
4.9% | 10.3% | -4.8% | 18.9% | 78.7% | -33.4% | 10.6% | 60.0% | -31.1% |
Total |
1.6% | -1.2% | 2.8% | 8.5% | 5.1% | 3.1% | 3.0% | 0.7% | 2.2% |
Booking dollars and units moved lower in Q3 compared to Q2 for EMRs and SSRs. In total booking dollars fell 10% and units dropped 15% with a 6% ABP increase. The comparison to Q3 of 2013 shows dollars and units up for EMRs and SSRs. All in, dollars jumped up by less than 13% with units 2% better. The ABP for SSRs fell about 30% while EMRs were up 15% and the total was 10% higher. Year to date metrics have had mixed results compared to 2013. In total dollars inched up less than 1%, units down 1%, and booking prices 2% higher.
Bookings Growth by Relay Category
|
Q3 Versus Q2 CY 2014 | Q3 2014 Versus Q3 2013 | YTD CY 2014 Vs. YTD 2013 | ||||||
Category |
Dollars | Units | ABP | Dollars | Units | ABP | Dollars | Units | ABP |
Electro-mechanical |
-10.6% | -14.9% | 5.0% | 15.7% | 0.8% | 14.7% | 1.4% | -2.4% | 4.1% |
Solid State |
-8.7% | -22.0% | 17.0% | 2.5% | 42.6% | -28.1% | -3.8% | 34.1% | -30.1% |
Total |
-10.2% | -15.2% | 5.8% | 12.7% | 2.2% | 10.3% | 0.3% | -1.3% | 1.7% |
The graph below shows total quarterly indexed sales and bookings in dollars and units for the reported data. Sales dollars and fell in the last quarter of 2012, held unchanged in Q1 of last year, rose in Q2, fell in second half of the year, and generally rose this year. In 2012 booking dollars and units fell in Q4, recovered in Q1 of 2013, fell off in Q2 and Q3, then rebounded the next three quarters and dropped sharply in Q3 of this year.
The overall indexed selling prices have moved lower by 8% between Q1 of 2012 and 2013 then recovered in Q2 of last year, held steady until a small dip in Q1 of this year and are now at two year highs. Booking prices have decreased about 25% from Q1 of 2012 to Q4 of last year and then increased to meet the ASP in the last quarter.
Book-to-bill dollars and units trended up from Q1 of 2012 to Q1 of last year, moved down the next two quarters, recovered some in Q4 and Q1, held steady in Q2, and dropped in Q3. The ratio of average booking to selling prices has general moved lower but remained at or above 1.0 until Q2 of last year. It fell to a low in Q3 of 2013 and has risen to be just below 1.0.
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.