It's not uncommon for switch prices to fall 2–3% each year, but prices will likely be stable for the next six months because of high raw materials costs. The good new for buyers is prices won't increase despite the higher costs that suppliers face.

"We are faced with higher materials costs, but prices will be stable," says Kiyoko Toyama, president of NKK Switches in Scottsdale, Ariz. She says suppliers are absorbing a lot of the costs, but "when you absorb material costs you have to increase your manufacturing efficiencies. That's what we have done. We've have also shifted some production to cheaper labor areas."

David Webber, director of product management at C&K Switch in Newton, Mass., says the price of raw materials is affecting business more than the economic slowdown. "We use a fair amount of gold and now it is $800/oz. The price of plastic has hurt us more than anything else," he says.

C&K works with its suppliers to try to get a better price and issues blanket orders for materials. "We also look at plating thicknesses and evaluate whether a product has to be a certain thickness for a certain application," Webber says. In addition the company has moved some manufacturing from the U.S. to Costa Rica and China to reduce cost.

Suppliers are also focusing on value-added services with switches such as cable assembly in an effort to combat higher raw materials costs and maintain or increase profit margins.

Sealed switches often require some value-added services. They also cost more than unsealed versions.

"Demand is growing for sealed switches because of more harsh environmental applications such as in farm equipment, off-road transportation and construction equipment," says Toyama. "Switches need to be watertight and dust and oil protective."

C&K was primarily a board-level switch supplier, but it is seeing growing demand for sealed switches by manufacturers various industries including mining, defense, food processing and off-road transportation.

"There is a lot of customization with sealed switches," says Webber. "For instance in off-road transportation, the switches that go into joysticks are usually sealed above and below and they need a wire harness and a header and they have to be a particular length."

A sealed switch will cost more than unsealed version because it needs to be more robust and have a longer lifetime. A sealed switch may have 1–10 million actuations, while a regular unsealed pushbutton may have 10,000–50,000 actuations.

He adds there is also a trend to incorporate illumination in sealed switches. "There is also a drive to put more logos or symbols on the switch."