ACL Contract Electronics Manufacture

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Celebrating 27 years of excellence

Welcome to the Assembly Contracts Quarterly Report

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

ACL News

Our latest updates to Stock control have further improved our flexibility and move us closer to new approvals we are seeking.

Supply Chain & Manufacturing

There has been no immediate effect to the supply chain after the EU referendum result but the lower Pound, exchange rate fluctuations and above all the uncertainty, is likely to filter down.

A great deal of Q1s focus has been on the June referendum and the view with regards to Manufacturing is varied. Whilst some argue manufacturing would suffer if we were to exit others insist it only a short term disruption that will ultimately make little difference.

Whilst the situation is still very much in the air, it is almost guaranteed that there will be a sense of instability for the next few years. Capital investment is likely to be affected as component manufacturers review their markets. If the Pound remains weak in the medium to long term, prices will rise, and if the global market doesn’t recover there will be possible impacts on component availability as well.

UK manufacturing saw it's fastest growth in June for five months as PMI rose to 52.1 from 50.4. Above 50 means expansion and economists took heart that it had appeared to shrug off Brexit uncertainty and reflected strength of domestic business. Reports from Markit, however, threw shadows over this, suggesting that whether or not this can be sustained will depend heavily on whether any negative impact can be offset by a boost to exporters resulting from the falling pound.

Chinese manufacturing saw further contraction in June a PMI reading of 48.6 marking its 16th consecutive month of contraction.

UK & Global Trends

Whilst the start of this quarter saw little change to the markets and manufacturing situation in the UK the latter has been dominated by the results of the EU referendum. Shockwaves were sent throughout as the result was announced. It is likely that we are yet to see the actual effects of the decision in full.

The initial impact on markets of the historic vote wiped $2 trillion off global stock markets and the GBP saw itself weaken to a 2 year low against the single currency and the 10 pc decline against the Dollar was the largest it has ever suffered. Until political parties re-align and engage in a debate as to the correct time to trigger Article 50 we will remain in a state of limbo.

Some gains were made recently as plucky traders tentatively bet that Britain wouldn’t go through with it at all as the government continues to dither. Mark Carney helped some by assuring markets that they had plans for such an event in place and it will do all necessary to help the Pound recover.

Whilst everyone attempts to cover their own backs amid fears that political and financial instability will spill over to the real economy it is simply a waiting game and the actual outcome very much remains to be seen.

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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