ACL - celebrating 23 years of Electronics, Design and Manufacturing
Welcome to the ACL quarterly report

With this, we aim to inform our industry colleagues of any relevent news, component lead-time updates or market conditions that may affect the manufacture of your product, or the electronics industry in general.

I hope you find the contents informative and please feel free to get in touch if you have any questions or comments.

With my past few quarterly reports being dominated by the disasters of the floods and earthquakes and the effects of these disasters, I am pleased to report more positively.

Bringing Manufacturing Home

ACL Factory Image Bringing manufacturing back to the UK is dominating the news. Asia is experiencing a major manufacturing contraction, with quality issues and wages continuing to rise. China has recently changed its growth target to its lowest level in 8 years. With soaring transportation costs, a weaker pound and no real difference in component costs, there is a gradual trend to redirect manufacturing back to the UK.

This has been reflected in some of the newer business ACL has won of late. If you have any product manufactured abroad, now may be a good time to talk to ACL about having it manufactured back to the UK.

Growth

A recent survey suggests that in March the manufacturing sector grew at its fastest rate for 10 months. A report by the Financial Times says that manufacturing has accounted for 20% of economic growth since the recession. The recent budget cut in corporation tax will encourage investment and increase the competitiveness of many British firms.

Supply

Last quarter currency fluctuations were still rife and resulting in distributors adding protective mark ups to their pricing. Confidence in sterling seems to be rising.

With regard to component supply, the general picture for lead-times and prices is a more positive one. Vishay, ST and others have all boosted output. Some issues however, do still remain. For example NEC/Tokin has reported factory closures until Q4 2012 due to being completely compromised as a result of the recent flooding in Thailand.

The price and availability of some exotic minerals used in the manufacture of many passive components remains an issue.

I hope you find this report informative. Please find enclosed ACL's brochure together with a component pricing and lead time breakdown.

Arthur Woode
Director
 
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