Hundreds of UK businesses are winning millions of pounds of work as a result of the preparations for the London 2012 Olympic and Paralympic Games according to new figures published by the Olympic Delivery Authority (ODA) today.
The figures show that small businesses have won the bulk of work to date and are well placed to benefit through the difficult economic period as thousands of 2012 Games contracts come on track over the next three to four years.
Of the 801 companies that have already won over £3.5bn of work supplying the ODA, over 68 per cent are small and medium sized and 98 per cent are UK-based, and just under half are based outside of London. Also companies from across the country are supplying ODA contractors, for example a Welsh company is providing the steel for the Aquatics Centre and a Bolton-based company is providing steel for the Olympic Stadium.
The figures were published today as ODA Chairman John Armitt visited companies in the northwest that have already won major contracts on the London 2012 project. This is the first of twelve ODA business events that will take place in the nations and regions over the next year.
ODA Chairman John Armitt said: 'London 2012 offers businesses of all sizes major opportunities in the current economic climate. These figures show that businesses from all over the UK are already winning ‘economic gold’ with millions of pounds worth of London 2012 work. These benefits are directly a result of hosting the Games.
'We want to work with the best of UK plc to successfully deliver the Games – the largest project this country has seen for generations.'
LOCOG Chairman Seb Coe said: 'London has now secured its tenure as the next host city of a summer Olympic and Paralympic Games. As of next year, LOCOG is poised to release hundreds of opportunities for the best UK companies of all sizes to compete for work to supply our Games-time goods and services, so there is all to play for.
'The 2012 Games is already proving a golden opportunity to ensure growth in the UK economy and leave a legacy of fitter British businesses with the expertise of supplying the largest sporting event on earth.'
Olympics Minister Tessa Jowell said: 'These figures are yet more proof that London 2012 is a golden opportunity at a time of economic need. The Games will generate some £6 billion worth of contracts open to UK business large and small, not mention an estimated £2 billion dividend to the tourist industry.
'But this is not all – constructing and hosting the world’s biggest sporting event will inevitably increase the expertise, efficiency and competitiveness of British business leaving a legacy which will benefit the UK economy for decades to come.'
Mayor of London, Boris Johnson said: 'In these difficult times, it is great news to hear that half of 2012 contracts are going to London businesses and particularly our small businesses, which are the mainstay of the capital's economy. Not only will this help them through the economic downturn but they have the honour of this once in a lifetime opportunity of helping create the 2012 Games.'
Minister of State for the Department for Business, Enterprise & Regulatory Reform, Pat McFadden said: 'In these difficult economic times this is a real vote of confidence in British business. I am pleased to see that our SMEs are leading the field in the race for London 2012 contracts.
'Hosting the 2012 Games is bringing fantastic opportunities to all our regions. The impact on businesses across the UK will be felt long after the athletes cross the finish lines.'
The latest London 2012 ‘business benefits’ figures published today also show that SMEs make up nearly 92 per cent of the 42,500 companies registered on CompeteFor, the unique ‘dating agency’ which aims to match businesses with London 2012 related supply chain opportunities.
The Olympic Delivery Authority (ODA) and London Organising Committee (LOCOG) expect to allocate over £6bn of work as part of an estimated 75,000 future business opportunities covering direct contractors and their supply chains over the coming years.
London 2012 business benefits:
- 801 contractors have won work supplying the ODA worth over £3.5bn in total.
- Over two thirds (68 per cent) are small and medium sized.*
- Just under half (46 per cent) are based outside of London.
- More than one in ten (12 per cent) is based in the Olympic Park Host Boroughs.
- 98 per cent are based in the UK.
- Over 42,000 (42,671) companies have registered on CompeteFor, more than 29,500 (29,517) are small companies with less than 50 employees and
89 per cent have less than 200 staff. - 29,199 of companies registered on CompeteFor are based outside of London.
The ‘
London 2012 Business Network’ provides information about London 2012 related business and events and links to the ‘
CompeteFor’ service, a business ‘dating agency’ that matches companies to opportunities supplying London 2012 contractors. Up to a fifth of London 2012 supply chain opportunities are expected to go through the CompeteFor system.
LOCOG procurement for Games-time goods and services will start in earnest from 2009 onwards. However, LOCOG contracts have already been won by companies around the UK to supply the handover performances in Beijing as part of the closing ceremonies of the Beijing 2008 Games, the VISA London 2012 Handover Party in the Mall and a number of office based services and systems. LOCOG is currently seeking expressions of interest in one of this year’s most high-profile opportunities – to design, market and license a London 2012 mascot.
Notes to editors:
1. ODA Chairman John Armitt spoke at a Northwest Regional Development Agency business breakfast, and visited Watson Steel, the Bolton-based company providing the steel for the Olympic Stadium, and Korec, a Liverpool based company that recently won a contract to supply IT services to the ODA.
2. How CompeteFor works;
- ODA and LOCOG are advertising their direct contract opportunities online through CompeteFor, which is co-funded by Regional Development Agencies, and direct London 2012 contractors appointed will be encouraged to advertise their supply chain opportunities through the system. For example all contractors that have been awarded ODA infrastructure or venue contracts are registered as buyers on CompeteFor.
- Companies at every level of the London 2012 supply chain will be encouraged to advertise their supplier opportunities through CompeteFor.
After registering basic company information any interested business can view the opportunities advertised. Companies can then complete a business profile, which involves answering a series of simple questions, to be able to compete for opportunities. - A company’s business profile is automatically tested against a small number of minimum standards in areas such as health and safety. If these requirements are not met the company is automatically referred to tailored business support to help improve their performance. This service is provided by Business Link in England and the support services in Wales, Northern Ireland and Scotland.
- Once a company’s profile is successfully published on CompeteFor they are automatically matched to opportunities which suit their business and invited, by email, to apply for them by filling out a short, tailored application form. The buyer advertising the contract then selects a shortlist of companies and invites them to formally tender through the buyer’s own procurement system.
- Details of the winning bidder(s) are published on CompeteFor and unsuccessful bidders receive feedback from the buyer. Throughout the process local business support agencies are on hand to help companies maximise their chances of success.
*Of the 77 per cent of ODA suppliers where company size is known (622), 68 per cent are small or medium sized companies.
– Ends –
For further information please contact the Olympic Delivery Authority Press Office on +44 (0)203 2012 700.
The construction of the venues and infrastructure of the London 2012 Games is funded by the National Lottery through the Olympic Lottery Distributor, The Department for Culture, Media and Sport, the Mayor of London and the London Development Agency.
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