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Assembly Contracts Quarterly Report
Q4 2020
Celebrating 30 years of excellence
ACL factoryMay I take this opportunity to wish you a happy and prosperous New Year!

This report aims 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 manufacturing of your product.

I hope you find the following valuable and informative.

Please feel free to contact us if we can help in any way or if you require any additional information.

Supply Chain & Manufacturing
ST Microelectronics - experiencing difficulties with the manufacture of some components, and in particular parts prefixed with STM.

Hirose DF12 series of connectors - have all been assigned new parts numbers.

GPS modules - a key component that is used in several manufacturers' modules is in short supply, due to a fire in a Japanese supplier's factory.

Molex Micro-Lock 1.25mm connector series - now all obsolete.

Microchip / Atmel - we are witnessing an increase in lead-times on some parts.

Chinese New Year - commences February 12th, lasting for 16 days. As most are aware this celebration will increase component lead-times, so please bear this in mind when reviewing order requirements.
Continuous Improvement
Supply chain managementACL has now completed our Industry 4.0 project with the electronic linking of all the major component suppliers into our in-house developed ERP system. Vital live component availability/pricing and obsolescence data are now obtained instantly and have greatly speeded up the quotation process. This, together with our already networked assembly machinery and operator work stations, completes the project.

The flexibility offered by our bespoke ERP software ensures we can respond immediately to your business requirements. ACL is a paperless operation, with all quotations, document control, planning, traceability, and production being controlled by this system. Another example is the simple implementation of the additional documentation required as we leave the EU.
ACL News
We welcome Matt Elliott who has recently joined our purchasing team. Matt brings a wealth of knowledge, having worked in various technical procurement positions.
UK & Global Trends
ACL SM LineChina's manufacturing activity reportedly expanded for the ninth month straight as the PMI* beat expectations, reporting in at 54.9** for November, from 53.6 for October, implying good news for the availability of Chinese manufactured components.

Sterling kicked off the quarter close to month highs against both the Dollar and Euro and remained generally unfazed by talks of a no-deal Brexit.

Mid-quarter, however, saw increases in COVID-19 cases alongside growing Brexit and US election uncertainty, hurting the pound.

Poor GDP data further halted Sterling's gains, as data released showed the economy grew by only 1.1% in Q3. It was boosted, however, towards the close of the quarter as positive PMI* readings showed 57.3** (which was above the expected 55.9).

Sterling closed the quarter at 1-year highs against the Greenback and returned to a strong position against the single currency following a positive Brexit deal.

The US dollar began the quarter at a low in the run-up to the Presidential election and remained incredibly volatile throughout, as polls alternated between Biden & Trump. It fell to a 2.5-year low, as progress towards an agreement on the US stimulus package slowed and a potential Brexit deal boosted the other 2 major currencies.

*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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