ACL Contract Electronics Manufacture

Innovation . Design . Manufacture

Celebrating 26 years of excellence

Welcome to the Assembly Contracts Quarterly Report

I'd like to take this opportunity to wish you a happy and prosperous New Year. With this report 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.
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

I can report that we have been recently audited by the following approval bodies ATEX, CSA & FM and have also been audited to ISO / IEC 27001 Information Security, with zero non-conformances.

Supply Chain & Manufacturing

Chinese New Year falls on February 8th. Most factories close a couple of weeks prior to the holiday and reopen again 1-2 weeks after. So please bear this in mind. Ideally orders should be placed with us early this month if you require product to be delivered in February / March.

The end of 2015 has seen stabilisation across all component areas for lead-times and pricing. Upward changes in material costs are to be expected this year in response to the US interest rate hikes and the continued 6 month trend of the strengthening of the Dollar, and the more recent weakening against the Euro. UK Manufacturing PMI data came out better than predicted at 51.5, versus an expected 51.3, indicating some growth in the sector, but this again was one of the lowest scores in two years. The start of November saw what looked to be sturdy growth : however this slowed and December brought job losses and softer output.

Chinese Manufacturing has seen further slowdown this quarter with a poor PMI report showing contraction in the sector for the fourth consecutive month and the prospect of further stimulus looms heavy on the Asian powerhouse.

UK & Global Trends

Markets in general have seen loses this quarter and the new year has seen further sell offs. This seems to be triggered mainly by the worry that China’s growth is weakening and tensions in the middle east. This is contrary to most forecasts, including the World Bank’s predication of reasonable economic growth in 2016, with most of the slow down being in the emerging markets. We are nowhere near the days of 2008!

This quarter has been relatively mixed for GBP. In September Chinese imports reportedly plummeted by 17.7pc decreasing demand for currencies with strong trade links to China and allowing GBP to recover some previous losses. However the continuing trend is a fall in value of GPB, including in recent weeks also against the Euro.

The Bank of England pushed back the date for raising interest rates once again indicating the UK is failing to sustain demand pressure to prompt a rise. This decision is supported by the aforementioned PMI data as an attempt to support firms and in turn UK growth. More positively unemployment is at a 10 year low of 5.2pc , but with it came a slowdown of wage growth from 3pc to 2.4pc in October ensuring the positive unemployment figures were not enough to encourage the Bank of England to raise rates.

The recent vote in the House of Commons to bomb Syria impacted GBP as market logic sees this as increasing the chances of a terrorist attack in the UK.

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 2015