ACL Contract Electronics Manufacture

Innovation . Design . Manufacture

Celebrating 26 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 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 and products are manufactured well in advance of delivery dates, giving you peace of mind.
Prototype
I hope you find the following informative. Please feel free to get in touch if you have any questions or comments.

ACL News

We now offer a 3-YEAR WORKMANSHIP WARRANTY AS STANDARD at no extra charge. Our record of low failures prompted us to offer this competitive advantage to all our customers.

Adding to our extensive existing approvals we have recently attained the FM quality standard (Factory Mutual). The FM mark indicates products have been tested and manufactured to US standards.This quarter ACL has been audited by 4 external audit teams and approval bodies, with zero non-conformities.

Supply Chain & Manufacturing

Mainly as a result of the fluctuation in exchange rates, the component market has seen some minor price movement this quarter generally in an upwardly direction. Raw material costs, however, are reported to have fallen at their quickest rate since May 2009, and this may filter through at some point.

UK Manufacturing had a good start to the year as the manufacturer index rose to 53 from 52.7 in December (anything above 50 denotes expansion). This is mainly due to the recovery of export orders which, last quarter, we reported as low. Markit data suggested that manufacturing output is rising at a quarterly pace of around 0.2 pc, double that recorded at the end of 2014 addressing those concerned whilst supporting those firms, from the CBI survey of last quarter, who expected output to rise.UK employment has also seen an upturn and unemployment has fallen to its lowest level in more than six years at 5.8pc. With this are positive job creation figures which are said to be at a net rate of 70,000 per month. In contrast, the Chinese manufacturing sector has seen further contraction. With PMI data under 50-point level on the purchasing manager index (PMI) firms are said to have cut prices in a bid to sell product. Accompanying this was the news from Chinese authorities that the Chinese economy has also slowed to its weakest in 24 years. The Eurozone has seen a more positive end to the quarter with a jump in growth just in the last month. PMI is recorded at a four year high of 54.1 from Februarys 53.3 showing a first-quarter economic rise of 0.3pc.

UK & Global Trends

Echoing the solid manufacturing sector data was that of the UK Economy which also saw a solid start to 2015. The purchasing manager index (PMI) rose to 57.2 from 55.8 in December.

This quarter has seen a rollercoaster ride for the Euro and a volatile relationship between USD/GBP rates. With inflation in the UK falling over the past year comments by the BofE's Chief Economist Andy Haldane, that interest rates are just as likely to be reduced as they are to be raised, naturally served to hurt the pound. In the last month UK inflation dropped to zero and with it came predictions that there is a good chance it will sink below this, sparking rate cut talks. Just last Friday the BofE's Mark Carney assuaged the fear of rate cuts indicating that the movement of interest rates would in fact be up. This gave the pound more strength against its major currency rivals over the weekend. Negative inflation, however, remains a worry. GBPs relationship with the USD has been a tumultuous one this quarter with one making ground only to lose it shortly after to the other. This dance was mainly due to both the UK And US's rate hike discussions. USD lost some ground to GBP after the US federal reserve cut growth forecast prompting predictions for higher rates to be pushed out to September and GBP lost some following the suggestion made by Andy Haldane. Positive PMI data also worked to strengthen the pound.

The Euro seemed to benefit from both these situations and has managed to make up some lost ground on both currencies. It has suffered somewhat ahead of the Eurozone's quantitative easing programme which kick-started this month, which prompted the pound to gain multiple seven year highs against the Euro. As negotiations between Greece and its creditor's looks more promising the single currency has gained support but European yields are expected to continue to decline as the ECB continues to buy up bonds.

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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