ACL Contract Electronics Manufacture

Innovation . Design . Manufacture

Celebrating 24 years of excellence
 
 
Welcome to the Assembly Contracts Quarterly Report
With this we aim to inform our industry colleagues of any relevant news, component lead-time updates or market conditions that may affect the manufacture of your product, or the electronics industry in general.
With ACL, in Manchester, as your manufacturing partner you receive unsurpassed manufacturing quality, delivered on time every time by our IPC trained, experienced workforce. We have hundreds of accounts with suppliers worldwide giving us the ability to source components where others may struggle.

Our sophisticated bespoke, written in-house, purchasing, QA, and production control software is continuously modified in response to market changes. Materials are always purchased well in advance of delivery dates, giving you peace of mind.
Automated SM Inspection
I hope you find the following informative. Please feel free to get in touch if you have any questions or comments.
Supply Chain & Manufacturing
This quarter has again seen component prices and lead times remain relatively stable.

The cost of raw materials has eased somewhat due to weaker commodity prices with lead times remaining stable throughout.

Sterling has weakened and losses are likely to be passed on from suppliers.

Tantalum prices have stabilised after the reduction at the start of the year made up for the great jumps in pricing last year.
UK & Global Trends
UK manufacturing saw its strongest growth in two years, according to a survey in June, boosting hopes of strengthening economic recovery. The purchasing Managers' Index rose to 51.3 in May (from 50.2 previously) avoiding a triple dip recession.

For the first time in four months the manufacturing sector created jobs as both production and new orders picked up. The domestic market was the main driver behind the third consecutive monthly rise in new orders.

In addition to this an industry survey found that global industries are increasingly favouring Britain as a place to source high-tech components and future profits. The Economist Intelligence Unit ranked third the UK, behind the US and China, as the country where global companies expect to derive the majority of their profit growth over the next two years.

The major change to UK banking this quarter was the appointment of Mark Carney as the new Governor of the Bank of England last week. Predictions were made that he would try to emulate Japan's all-out approach to monetary easing by using the exchange rate to boost overseas demand. Despite these fears Carney left interest rates at 0.50% and held asset purchases. As a result the pound was damaged losing 1% against the USD (5 month low) and the same with the Euro leading to a 4 month low, as the door has been left open for future quantitative easing.

In addition to these pressures on Sterling the UK government's latest spending review which announced more cuts and a freeze on public sector wages rises was seen to further undermine Sterling. The Office of National statistics reported at the end of June that the UK economy reached its lowest point leading to a steep decline in the Sterling Exchange Rate.

There is a positive to this, however, in that the weak pound has made UK goods relatively cheaper in the global marketplace boosting the UK's global competitiveness and a pick up in export orders over the next three months is expected.

Please find enclosed ACL's brochure together with a component pricing and lead time breakdown.

If you would like to discuss any manufacturing requirements please don't hesitate to get in touch with me.
Arthur Woode
Director


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