Engineers wary of Emu preparation

British engineering employers are making hardly any preparations for the European single currency, despite being overwhelmingly in favour of it, according to a survey carried out by Lloyds Bank. 'For many, time is beginning to run out,' comments Michael Ridings, Lloyds' commercial services managing director.

Almost three-fifths of members of the Engineering Employers' Federation favour European monetary union (Emu) entry, but only 15 per cent have made plans for its inception in only a year's time, for countries in the first wave. Only 20 per cent have appointed an individual manager with responsibility for Emu entry preparations. Two-thirds believe Emu is important, but that there are other, more pressing concerns, or that there were too many unknowns for them to justify allocating resources to it. Many blamed the government, whose unclear policy and U-turns have made it difficult for them to make plans.

However, Ridings points out, for companies with customers on the Continent, time is running short. Companies have to work out how the single currency will affect their pricing, he says it could reveal cross-border price differences, which would have to be corrected. Finance, IT and business strategy would all be affected. 'The engineering sector underpins UK industry,' he says. 'If it is not ready for Emu, it will have repercussions throughout the economy.'

The survey questioned over 800 members of the Engineering Employers' Federation, of whom most were small-to-medium sized enterprises.