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Assembly Contracts Quarterly Report
Q3 2020
Celebrating 30 years of excellence
ACL factoryIn 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, product manufacture.

May we take this opportunity to wish everyone in your Company and your families well during these challenging times.
ACL is open for business, operating at fully capacity, and as a critical key supplier to the medical & infrastructure industries, will be remaining so.

We are taking every precaution and are following guidelines to protect all of our employees.

Whilst at this time material availability is still favourable, lead-times are extending and pricing is generally increasing. So, should you have any visibility of requirements, even if not for immediate delivery, we would urge you to place your orders as soon as possible.

I hope you find the following informative.

Please feel free to get in touch if you have any questions or comments.

Supply Chain & Manufacturing
ACL SM LineST Micro parts are going on allocation meaning lead-times could go up to 52 weeks+. Here at ACL we've proactively engaged with our key client base to make them aware of this issue, allowing them to manage the situation.

The global Covid-19 situation appears as dynamic as ever with changes in policy and restrictions happening on an almost daily basis. It is possible that further restrictions could have an impact on supplier's ability to deliver.

In light of the current situation we are seeing numerous clients reviewing their supply chain strategy.

Some of our clients have been questioning the use of overseas manufacture and are evaluating utilising the UK manufacturing base.

We are still seeing additional carriage charges and some increases in component lead times and costs.

As the weather changes and the nights draw in it highlights that some major family time is just around the corner. Christmas will be upon us before you know it and shortly followed by the Chinese New Year. As most are aware both these celebrations and the points highlighted above will increase component lead times so please bear this in mind when reviewing order requirements.
ACL News
Supply chain managementLate November will see ACL pass the milestone of 30 years of operation. We like to take this opportunity to thank everyone who has supported us on our journey and making the business what it is today. As we move into our next 30 years, we'll be starting this journey with a new face or two.

In early October, I joined the ACL team in the role of Commercial Director having previously spent the past 30 years in various field service, project delivery and commercial roles. My appointment is part of our succession planning of our current Commercial Director Arthur Woode, who has plans to retire at the end of 2020. This handover period is designed to ensure our client base witnesses a seamless transition as we embark on our next 30 years.
Following on from the recently completed project to install a lower energy lighting solution across our manufacturing centre, we performed an environmental study to assess the impact our transport actions are having on the environment. The business has commenced a migration program for our transport fleet to an EV or hybrid solution. This action shows our commitment to lower our carbon emissions wherever possible.
UK & Global Trends
ACL SM LineSterling began the quarter low as UK GDP expanded only 1.9pc in May and the BofE Governor suggested the UK economy shrunk around 25pc last quarter. GBP began to recover as PMI* data beat expectations rising to 57.1** in July, from 47.7 in June, indicating growth again following the March lockdown. USD posted its biggest decline in a decade, as a result of increased coronavirus cases, delays in the US stimulus package bill and the continuation of simmering US -China tensions. It suffered is biggest blow since the Great Depression as GDP collapsed by 32.9pc; its biggest contraction since records began being kept in 1947. As a result, GBP gained four-month highs against the greenback but as Brexit uncertainty continues, gains against the Euro were limited. As the quarter closed, all eyes are on whether significant progress can be made when we enter the last leg of talks before the EU summit.

*a measure of manufacturing sectors order book
**Anything below 50 denotes contraction and above denotes expansion
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.

Graham Baker
Commercial Director
What our clients say about us...
" It really was a pleasure to visit the company, and the audit confirmed that you have implemented a very robust and effective system "
" Tank you all very much for all the hard work you have put into enabling us to order these boards again. I greatly appreciate it. "
" I remain so wonderfully impressed by the solid working relationship that has developed between our companies and how nicely proactive and responsive you all are for us. "
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