Lack of preparation for the euro by UK companies trading into the euro zone has created a competitive advantage for companies in the Republic, according to an IT services and consultancy company.
Cap Gemini, which has carried out a survey across 350 companies in the UK and the Republic, has found that just over a quarter (26 per cent) of UK companies have yet to discuss the euro at board level. The corresponding figure for the Republic is 4 per cent.
The survey also found that 48 per cent of companies in the Republic have implemented training for their staff in the euro, while less than half that figure is doing so in the UK. It further found that while 34 per cent of companies here have already implemented changes in general marketing literature in relation to the euro, this is true for only 11 per cent of companies in the UK.
The survey found that 36 per cent of companies here are issuing price lists in euros, compared to just 10 per cent in the UK. For reporting accounts, the survey found that 18 per cent of companies here do so in euros, while only 5 per cent do so in the UK.
"Irish companies have a window of opportunity to exploit their euro lead over UK competitors and should be developing strategies to push home their clear competitive advantage," said Mr Noel Crowley, EMU director at Cap Gemini Ireland.
"The hesitant UK public view of the euro may be reflected in many corporate attitudes too," he said. "Irish companies on the other hand seem to have taken this opportunity to exploit their lead and win European market share against their UK competitors."
Even if the UK were to participate in EMU in the foreseeable future, the Cap Gemini study suggests their IT systems would not be ready. UK companies expect to be able to get their IT systems ready in an average of 5.8 months. However, Irish companies said an average of 7.8 months is more realistic. Cap Gemini believes that a more appropriate average for completion is 15 months.
Less than half of UK companies believe that the euro will create opportunities for new business and 58 per cent do not believe they will lose business by being outside EMU.
Even over the next 12 months, little action on euro preparation is expected. In the UK, 62 per cent of companies have no plans to adapt systems, while 63 per cent will not even have a euro bank account.
"Ireland seems to be ahead of the UK in its euro thinking," said Mr Crowley. "The challenge now for Irish companies is to use that lead and exploit it strategically. The Irish economy has consistently outperformed the UK in recent years. This study suggests that it can continue to do so."
