ACL Contract Electronics Manufacture

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Celebrating 25 years of excellence

Assembly Contracts Quarterly Report

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 and products are manufactured 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.

ACL News

May I take this opportunity to introduce you to, and welcome on-board, Andrew Colduck who is joining our QA team. Regulatory compliance is a key part of the services we provide; Between them, Andrew and Derek have decades of experience.

A new essential service we are providing to our clients is to check whether their products are ready for the new RoHS2 compliance.

Supply Chain & Manufacturing

The component market over the past few months has remained stable with no major disruptions, largely echoing the situation in the previous quarter.

The start of quarter 4 was a positive one for the UK manufacturing industry with reports of job creation at a four-month high and increased activity. CBI reports growth is to continue at a similar pace in the coming months.

The Purchasing Managers Index rose 0.2 points to 53.5 in October which is the highest reading for four months (> 50 = expansion). Unemployment has also fallen 63,000 to 2.33m.

In contrast, manufacturing exports are low as a result of the slowdown in Chinese and Eurozone manufacturing sectors (PMI reports 50.8 in October to 50.3 in November and 50.6 in Oct to 50.1 in November, respectively). Weakened currencies in Russia and the EU are adding to this.

Despite the fall in UK exports the latest survey by the CBI on industrial trends found that confidence was growing about future trade patterns as firms expect output volumes to increase in the quarter ahead.

UK & Global Trends

With this came a picture of a stronger UK economy which is said to have increased 0.6pc this quarter. In his Autumn Statement, George Osborne anticipates economy growth of 2.4pc in 2015. Lower oil prices, at four year lows, eased inflationary pressures in the UK and have aided the BofE to hold off from interest rate hikes. For now, they have left rates unchanged at 0.5pc, and will continue to do so should economy growth continue.

Sterling has been hit by the low inflation rates but has remained resilient helped along by Mark Carneys comments that the falling energy prices could act as a tax cut to Britons leaving them with higher disposable incomes. Alongside recent data showing wage growth overtaking inflation the result has been higher demand for the pound.

Despite Eurozone businesses ending the year in relatively good shape, compared with expectations, growth remains weak with PMI printing at 50.8 in December from 50.1. The possibility of full Quantitative Easing at the European Central Bank has merely made investors cautious of the single currency which has remained relatively strong against the majors. Uncertainty around the Greek election has impacted concerns over Eurozone stability. As Greece's 300 MPs fail to reach a majority vote the possibility of a general election looms. There will be three polls before a general election is automatically triggered. The far left party Syriza are favourites to win should this be the case and as a result Greece may find itself in political turmoil. The Syriza party are calling for the eurozone to cancel a substantial part of Greece's debt. Fears are being revived that the twice bailed-out country may well reignite the Eurozone crisis.

The focus of the end of the fourth quarter this year has been the plummeting Rouble in Russia and its weakening impact on the economy. Despite interest hikes to 17pc, meant to strengthen the currency, it hit record new lows. Against the Dollar it has lost more than half its value this year. The news that the US was considering new sanctions against the country for its support in the Ukraine alongside the falling price of oil and dwindling confidences in the Bank have done little to boost the currency and the high interest rates only serve to further slow the economy. Some gains were made on Wednesday ahead of Putin's speech in which he insisted the Rouble would stabilise but warned the economic crisis could last two years.

USD has had a turbulent fourth quarter with gains being made by both the pound and euro following poor data. It has recently seen itself rallying to move back towards multi-year highs on the back of Janet Yellen's comments regarding delayed rate hikes.

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