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.

We now offer a 3-Year workmanship warranty as standard at no extra charge.

Our sophisticated, bespoke, written in-house, purchasing, QA, and production control software is continuously modified in response to market changes.
Prototype
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

Our website has been updated to include the latest testimonials from clients, QA audits and Approval Body audits.

Our quality systems have been updated to include the requirements of Good Manufacturing Practices.

Supply Chain & Manufacturing

This quarter has seen continued price changes as a result of the USD's increasing strength, particularly against the Euro. Raw material prices continue to decrease and lead times are generally stable with only some components seeing constraints.

UK Manufacturing PMI was reported at 51.5 on Thursday, which although higher than the predicted 51.3, represented the second lowest score in the last two years. Although domestic activity remained sturdy export growth has been hurt as a result of both GBP appreciation and continued economic uncertainty in the Eurozone. The manufacturing sector has seen the first decline in factory jobs for 2.5 years but this was not enough to offset the overall solid hiring trend reported as last month saw the fastest increase for three months.

Chinese manufacturing growth has continued to slow throughout Q3. It has seen PMI rise slightly but overall the sector has seen further slowdown for the second consecutive quarter. A culmination of fractional service growth, decline of new orders and job shedding, as well as prices falling has sparked fears of deflation and reports the Chinese economy is contracting.

UK & Global Trends

The start of the quarter began positively for GBP with an upward revision of Q1's growth figures from 0.3 to 0.4pc driving the annualised figure up from 2.5 to 2.9pc. Despite this the pound has not had an easy quarter overall and predictions that the BofE raising interest rates this year are being replaced by those predicting the earliest rise to be in March/April with the majority predicting August 2016.

Global volatility, particularly in China, caused a roller ride on the currency markets. The Eurozone was hit at the start of the quarter with its first recorded sovereign default when ten Greek cities failed to repay loans. In reaction to the news the Euro declined a cent. The single currency made some gains as Q2 data showed employment rose by 0.3pc.

The USD has had a strong quarter making moves to reduce its economic imbalances. Any growth in global economy, despite slow growth in China, is likely to be owed to the US. GBP lost some ground after Fed Policymaker William Dudley hinted at possible rate rises in 2015. September saw the GBP leap 100 pips as rate hike hopes were banished, after the non-farm payroll report came in way below market estimates, resulting in two-thirds of the market betting that rates would not be raised until 2016.

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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