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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
We are already working on the conversion to the new ATEX standard which is likely to become compulsory towards the end of next year.
Component Lead-Time Increases - Severity Continues.
ACL SM LineThe second half of 2018 saw the component markets turmoil continue as constraints and pricing fluctuations continue.

Schottky diodes are up to 26 weeks with Zener's as high as 40 weeks. Shortages on other Discrete Devices remain high. MLCC shortages are worsening as stock availability in the market is running low as demand continues to grow particularly for sizes 0805 and 1206.

Lead times for commodity parts are being pushed out as far as 52 weeks and manufacturers struggle to keep up with demand. A high number of online suppliers have stopped receiving back orders on a number of components until the situation improves.

ACL urges customers to look at long-term sales demand and forward ordering in order to lower the impact on their own markets.

Please see the enclosed component lead-time update as well as our website for further comments; Click Here
Supply Chain & Manufacturing
Supply chain managementWhilst Q2 closed on a growth increase for British Manufacturing and the start of Q3 predicted manufacturing PMI at 54.1* against last quarters figure of 54.4.

*anything below 50 denotes contraction and above indicates expansion.

The start of September however saw it have its weakest month in two years with PMI falling to 52.8. this is its weakest level since July 2016 in the aftermath of the Brexit vote.

Whilst this still shows growth it also warns of economic slowdown as the prospect of Britain leaving the EU without a deal weighs heavy on sentiment.
UK & Global Trends
ACL SM LineThe pound started the quarter on a high as revised economic growth figures for Britain's first quarter were better than expected. The economy's growth was reported 0.1 pc higher than the preliminary number. Rising hopes of monetary policy tightening added to the high. July, however, also saw the resignation of Boris Johnson which led to a slight slip in the highs. Speculation over a Brexit deal weighed heavily on the Pound throughout Q3 but remained buoyed as BofE Governor Mark Carney announced he would extend his stay.

GBP to EUR rates started the quarter relatively high but dropped heavily at the start of September to coincide with the UK Manufacturing PMI and Brexit doubts. The quarter closed marginally higher than it opened.

The EU saw inflation slow to 2.1 pc in August from 2.2 pc in July.

USD had a strong quarter with increased economic growth, steady inflation at the CBs 2 pc target and its lowest unemployment rates. The end of the quarter saw Fed hike interest rates from 2 pc to 2.25 pc.
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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