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Assembly Contracts Quarterly Report
Q2 2018
Celebrating 28 years of excellence
 
ACL factory In this report we aim to inform our industry colleagues of any relevant news, component lead-time updates and market conditions that may affect the electronics industry as a whole and particularly, the making of your product.

I hope you find the following informative. Please feel free to get in touch if you have any questions or comments.
ACL News
ACL is please to announce that we are now certified to the latest ISO 9001:2015 standard.
Component Lead-Time Increases - Severity Continues.
ACL SM LineThe end of Q1 saw the component market in turmoil with unexpected last-minute changes throwing schedules awry. Last quarter we reported that the rising trend towards IOT's, the increasing demand for smartphones, automation and the shift towards electronic controls in the automotive sector is having a significant impact on the component supply chain. This is unlikely to improve for the rest of the year with constraints expected to continue throughout.

As the biggest discrete manufacturer Vishay's lead-times are up to 52 weeks and there are huge shortages in some fab series. Nexperia's discretes are also struggling due to a strong demand from the automotive sector. Some of the part numbers, BAS, BAV, BZ and PESDs are on allocation. MLCCs continue to see shortages with lead-times up to 50 weeks+ and pricing on the rise. Murata have advised they will stop producing large size caps soon such as the GR series. Kemet have also advised they will stop production general MLCCs and focus on the automotive grade. AVX have stopped new orders for some of their parts including the auto grades and there is also a shortage on TANTs, particularly the A case.

Flash memory, particularly from Cypress is on allocation and MELF and MINI MELFs remain on allocation as well.

Lead-times are unlikely to improve in the near to medium future. Therefore, ACL continues to recommend that you forecast or estimate long-term sales demand and have discussions with us, to help you manage and reduce the impact on your sales & markets.

The supply chain is continuously keeping us up to date with the market pressures. Please see our website for further comments; Click Here
Supply Chain & Manufacturing
Supply chain managementLast quarter we reported the PMI marked a slow of pace to growth. In May growth accelerated to 54.4* from 53.9, a 17-month low in April.

*anything below 50 denotes contraction and above indicates expansion.

Whilst UK manufacturing continues to show growth the concern for the UK economy from Brexit and escalating Trade tensions, particularly with the US, is on the rise.
Rob Dobson of Markit commented that the expansion is mainly down to those working on backlogs of work and that a rapid improvement is required in order for the PMI to be sustained in the next quarter.
UK & Global Trends
ACL SM LineAfter the fall in April data raised fresh concerns over the UK economy Sterling slipped in June. It remained steady with the news of the PMI increase in May. A reflection perhaps on the caution with which the growth is being viewed. Britain's pending departure from the EU has led to nearly half of big companies from the EU cutting investment in the UK.

The Eurozone remained steady this quarter with little change to the PMI in June at 55.5. Its economy maintained its pace of growth increasing in June from the 18-month low witnessed in May.

USD has had a difficult quarter following the release of data pointing to an economy slow down in Q1. It also fell as a result of mounting trade tensions as Trump plans to bar several Chinese companies from investing in US tech and threatened the UE with a 20pc tariff on cars imported from there
Please find enclosed ACL's brochure together with a component pricing and lead time breakdown

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.

If you would like to discuss any manufacturing requirements please don't hesitate to get in touch with me.

Arthur Woode
Director
What our clients say about us...
" We think ACL's systems are second to none. Not one of our suppliers - ever, have been able to match up to your traceability etc. "
" I would like to take this opportunity to thank everyone at ACL for all the hard work and support you have provided over the past twelve months. It has been a pleasure dealing with you and long may it continue. "
" Developing our partnership with ACL has enabled us to significantly streamline our business and focus on our core competencies. "
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