ACL Contract Electronics Manufacture

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Assembly Contracts Quarterly Report

With this we aim to inform our industry colleagues of any relevant news, component lead time updates and market conditions that may affect the manufacture of your product or the electronics industry as a whole.

With ACL, Manchester, as your partner you receive unsurpassed manufacturing quality, delivered on time every time by our IPC trained, experienced workforce.

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.
I hope you find the following informative. Please feel free to get in touch if you have any questions or comments.

Supply Chain & Manufacturing

Towards the end of last quarter pricing was stable and lead-times were high but stable. The same can generally be said for this quarter but there are signs, as the economy continues to recover, of some inching out.

Data from Markit highlights the shortages in raw materials as an explanation for this. For the remainder of the year we see no drastic changes to lead-times.

Quarter 1 saw numerous reports regarding "re-shoring" of manufacturing. This is something we are experiencing first hand as customers bring projects to us for production here in the UK.

There are many new reports regarding the expanding UK economy and industrial production. The National Institute of Economic and Social Research reported the UK economy expanded 0.9pc in the second quarter. PMI showed manufacturing at 57.7 in June (anything above 50 shows growth in the sector). This is reportedly the strongest growth for a generation and a definite improvement on the previous quarter. Rob Dobson, Senior Economist of Markit, suggests this quarter is one of the best in two decades. New manufacturing jobs growth is also at a 39-month high.

UK & Global Trends

As a result of positive data Sterling had a strong quarter. According to Marketwatch reports the pound netted a 2.7pc jump against the dollar, a six year high according to data from Markit. Sterling also remains strong against predictions that the B of E will increase interest rates before the end of the year.

Last quarter reported general Dollar weakness and this quarter has seen the same as the dollar posted quarter 2 losses against all major currencies with the exception of the Euro which lost 0.6pc against the Greenback. The USD weakness could be attributed to its poor start to the year with a reported 2.9pc shrink in GDP in the first quarter. More positive reviews are emerging as new jobs were created through May and June.

The Euro remains weak with inflation rates remaining at 0.5pc. In a bid to raise this to levels closer to 2pc, negative interest rates have been imposed to help stimulate the Eurozone economy and the movement of money. Despite a fall the overall employment rate is still painfully high curbing any gains on other major currencies.

The future continues to look bright for the UK manufacturing industry as it continues to make a positive impact the UK economy as a whole.

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
© ACL 2014