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 offer a 3-Year workmanship warranty as standard.

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 ACL is now fully re-cycling any materials which can be reused.

Supply Chain & Manufacturing

Whilst suppliers have often been able to improve on the long lead-times they have quoted when it comes to placing orders, we are beginning to see this less frequently in the past few months with many reporting capacity constraints. We are also seeing a general upwards trend in lead-times across all component areas this quarter. Pricing has, in some areas, mirrored last year’s stable but high rates. Other areas, however, have been more sensitive to the exchange rates instability and sharp increases have been seen.

This quarter saw further growth in manufacturing with February posting at 54.5*. In March the PMI dropped to 54.2 which, although shows the eighth consecutive month of expansion in the sector, it is also the slowest rate for four months. This may be attributed to the inflationary effects of Brexit and the falling demand for consumer goods making it difficult to sustain the same levels of growth.

PMI for the Eurozone posted at a 6 year high and the US also pointed to strong growth. Chinese manufacturing also showed growth with March’s PMI posting at 51.2. Although this shows growth the general pace is slowing and export order are at a three month low of51.9 from 53.8 in February.

*anything below 50 denotes contraction and above indicates expansion

UK & Global Trends

It can’t be denied that the main political talking point of the first quarter of 2017 has been the official triggering of Article 50.

In the build-up the pound fell to fresh three-month lows, amongst fears of a hard Brexit as May hinted immigration would be prioritised over trade and stated it was ‘not about keeping bits of membership’. It gained somewhat following May’s announcement of her priorities for Brexit negotiations. Whilst she promised to push the ‘freest possible trade’ and to sign new deals with others in the world she also expressed it was not her intention to undermine the EU and warned against a ‘punitive’ reaction to Brexit and the harm it would do to the countries of Europe. The pound seemed to benefit also from the announcement that Parliament would get to vote on the final deal between the UK and EU.

Following the historic day, as May formally began Britain’s exit from the EU, the pound traded a little higher. Expectations of the pound running into rough patches once trade negotiations begin, however, were rife. Inflation was predicted at the start of the year to quadruple. Shortly after, however, the International monetary fund (IMF) raised its forecasts for growth and said it expected 1.5pc growth this year, following a better than expected economic performance since the Brexit vote.

The Eurozone has been benefitting from a competitive Euro with trade surplus increasing from 22.9bn EUR in Nov to 25.9bn in January. It did see some weakening towards the end of the quarter as German inflation fell sharply to 1.5 in March from 2.2pc in February.

USD has remained strong this quarter but slid in March after Trump was defeated over healthcare reform and speculation over his ability to deliver his other campaign promises grew. Further depreciation is being seen due to a combination of fears relating to Trumps meeting with china, the suspected suicide bombing in St Petersburg and the upcoming French elections.

US interest rate rises and the possibility of military action is also adding an additional twist.

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 2017