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Assembly Contracts Quarterly Report
Q2 2017
Celebrating 27 years of excellence
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.
ACL factory exterior
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.


We are pleased to announce that ACL is now fully re-cycling any materials which can be reused.

Supply Chain & Manufacturing

Last quarter saw price increases along with increases in component lead-times across the board. This quarter has seen little improvement in the majority of areas. Some prices and lead-times have seen slight stabilisation but remain at high levels.

We would therefore suggest you consider placing orders sooner rather than later.

This quarter saw an increase in manufacturing PMI to 56.3* in May but a decrease compared to Q1 and a three month low posting at 54.3 in June.
ACL factory
Despite this still meaning expansion in the sector and it in fact being the best quarter for three years, doubts have been raised as to whether this can be sustained into the second half of the year. Despite initially benefitting from the weak sterling exchange rate and the competitiveness that results, the main contributing factor to the lower PMI was the new orders index which tumbled to 54.9, its lowest level since July 2016.

The Eurozone saw job creation hit a 20-year high and factories saw their fastest growth in six years. Germany?s manufacturing grew to a 73 month high posting its PMI at 59.5. The US manufacturing sector saw slight rises also with a three year high reported in June at 57.8, up further from May?s 54.9.

Chinese manufacturing grew this quarter, at its fastest pace in three months. The PMI rose to 50.4 in June, up from May?s 49.6 which was the worst reading in 11 months.

*anything below 50 denotes contraction and above indicates expansion.
ACL Lead Assembly

UK & Global Trends

Quarter 2 has been a challenging month for all. In the wake of the terror attacks in Manchester and London focus shifted to national security. Once it was confirmed the general election would not be halted and would still go ahead as planned, many thought the shift in focus away from Brexit and austerity would be the making of a Conservative government. We were, in fact, left with a hung Parliament with the Tories losing seats to Labour in both England and Wales.
With more political uncertainty and waning support for the government following the Grenfell tower tragedy, the pound continues to weaken and economists fear rising inflation.

In the wake of the election results the pound tumbled and made extended losses. Sterling is struggling against all the majors and hit a seven month low against the Euro in the aftermath. Whilst doubts are cast over the type of Brexit May can achieve and whether she is able to hold on to her position, Sterling has a tough fight ahead. Sterling is around 13pc lower than its pre-referendum level against the dollar. Whilst some gains were made as Carney hinted at a rate hike and following positive GDP data, some analysts voiced concerns over sustainability.

The Eurozone ended the quarter on a more positive note following the speech by ECB chief and his praise for its economic recovery following positive data. Traders now expect the ECB will reduce its monetary stimulus. The success of Macron in the French election further supported the single currency as the victory ensures its second-biggest economy will not be leaving the currency bloc any time soon. The US posted positive unemployment rate this quarter, falling from 4.6pc to a 10-year low of 4.5pc.
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
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