ACL Contract Electronics Manufacture

Innovation . Design . Manufacture

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

ACL News

We are pleased to announce that the recent external audits carried out by CSA and FM, were passed with no non-conformances.

Going Green

Our green campaign continues.

In this quarter we have replaced the air-conditioning control system. In addition, so far, we have replaced 1/3 of our lighting for high efficiency LED, which has also improved the quality.

Supply Chain & Manufacturing

Last quarter saw price increases as a result of suppliers tasking immediate action to instability. Pricing remains high but stable in most areas in Q4 also as GBP struggled with gains across the board.

Lead times remain relatively stable with some constraints being seen in some areas of Analog, MCU and Memory. UK Manufacturing sped in September as output rose by 0.6pc. PMI posted its highest level since June 2014 rising to 56.1* at the end of Q4. This posted up from Novembers reading of 53.6 and well above the long running average of 51.5 as rising domestic and overseas demand has boosted output.

PMI for the Eurozone posted at 54.9 in December, the highest since April 2011. This is mainly due to factory growth in Germany, France and Italy.

Last quarter saw China's manufacturing activity contract for the second month. This quarter saw some improvement as figures posted above 50 for the entire quarter, ending on a high in December of 51.7. *anything below 50 denotes contraction and above indicates expansion

The focus of 2017 is yet again confirmation as to the type of Brexit Prime Minister May will back. If May decides to forego single market access in order to reign in immigration this could result in a response of hard selling of Sterling assets.

UK & Global Trends

2016 ended with GBP as the worst performing major currency of the year with a trade-weighted decline of -17pc, a result mainly due to Brexit.

On a more microscopic level, the start of this quarter saw ‘Hard Brexit’ fears result in a ‘flash crash’ for Sterling resulting in a 31 year low against USD and a six and a half year low against the single currency. Predicted loss of single market access increases fears that Britain’s already large current account deficit will balloon to unsustainable levels.

October saw the pound strengthen as estimates that UK economy grew by 0.5pc hinted that it had ‘shrugged off’ the effects of Brexit, despite this being lower than last year’s figure of 0.7pc. Fears of further Quantitative Easing still weigh heavily on Sterling, however.

In the run up the US election the USD was strong with some losses felt in the midst of the FBI investigation into Clinton. Predictions were a Clinton victory translated to USD strength and a Trump victory denoted weakness. It was, however, the Republicans who took victory and markets contradicted predictions as they remained strong in the wake of the results.

The results also proved favourable for GBP as Trumps support of Brexit led to positivity regarding a US-UK relationship, as he dismissed Obamas suggestion that the UK would go to the back of the queue for a trade deal. The focus on Trumps victory has also help shield politically driven selling that has hurt sterling since the Brexit vote in June.

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
0161 947 8000
© ACL 2016