London Olympic boost for business

By Bill Wilson
Business reporter, BBC News

The games get under way in London in July 2012

The race is on for UK firms to win contracts around the 2012 Olympic games in London.

So far most of the publicity swirling around the 2012 Olympic Games has been of a stubbornly negative nature, with talk of budget "black holes", a logo which attracted a mixed response at best, and possible raids on National Lottery funds.

But amidst the accusations and criticisms, particularly relating to the way costs have soared since 2005, it is easy to overlook the positives surrounding the London event.

Business opportunities

The right to host the Games could make this a 'golden decade' for major events in the UK and, therefore, British business Sebastian Coe, chairman, London Olympics Organising Committee

The biggest sporting event on earth offers a wealth of opportunities for UK businesses who want a slice of the many contracts and supply opportunities in the five-year run-up to the games.

And the starting gun on the race to win those contracts is being fired at an event at Manchester United's Old Trafford stadium, attended by hundreds of businesses from across the north of England.

Indeed Lord Coe, the face of the games, and the chairman of the London organising committee, says: "The right to host the Games could make this a 'golden decade' for major events in the UK and, therefore, British business."

There will be a wealth of opportunities for UK firms, including in security, ticketing, transport, catering, construction and internet services.

'Dating agency'

A so-called business 'dating agency' is being launched to help companies across the UK compete for thousands of business opportunities.

The site, called Compete For, will act as a brokerage service between those firms already in the London 2012 supply chain, and potential suppliers.

Olympic contracts 500 contractors won £1bn of work so far £6bn of work up for grabs 68% or work gone to small and medium firms 98% of work to UK-based firms Olympic Delivery Authority: 2000 direct contracts supply chain of 50,000 contracts London Organising Committee: 5000 direct contracts supply chain of 25,000 contracts

It will also put larger firms in touch with the small and medium suppliers they will need to deliver on Olympic-based projects.

The Olympic Delivery Authority (ODA) and London Organising Committee (Locog) say they expect to allocate over £6bn of work as part of an estimated 75,000 future business opportunities.

"Delivering the Olympic Games and Paralympic Games is a massive logistical operation, requiring goods and services from a large number of firms," says Lord Coe.

"Businesses the length and breadth of the country will win contracts and we hope gain a huge amount of experience of what it takes to stage and host big sporting events."

Nationwide opportunities

Lord Coe said the London 2012 Business Network will help firms compete for Olympic business opportunities direct with the games' organisers.

Lord Coe says the games will bring a wealth of business opportunities

"It will enable companies to compete for the thousands of contracts that will be available, and make sure companies throughout the UK are aware of, and can prepare for, the opportunities that staging the games in London in 2012 will bring," he said.

And ODA chairman John Armitt denied that the business opportunities were skewed towards the south-east of England.

"Around half of the work we have already awarded has gone to firms around London, but 50% has gone to firms outside London, including to firms in Northern Ireland and Scotland," he said.

It is important that businesses of all sizes throughout the UK get the chance to contribute to, and benefit from, this once in a generation event John Cridland, CBI

The network offers essential information on upcoming opportunities and how to bid for Olympic work, and supplies details about business events.

It is estimated that 20% of London 2012 supply chain opportunities could go through the Compete For system.

'Create partnerships'

One firm which has already registered on the site is Kent-based web design and software development firm Netsite, which is looking to make connections with other firms in a bid for contracts.

There will be contracts for keeping athletes and spectators safe

"Working together as a group will help," says Netsite's Fiona Colbourne.

"You can create partnerships to compete for work. We are registered with the new system and will see if it takes us forward."

John Cridland, CBI deputy director general, says: "It is important that businesses of all sizes throughout the UK get the chance to contribute to, and benefit from, this once in a generation event."

Bidding battle

Ensuring there is a successful 2012 games is a huge task and at the same time a huge opportunity for firms that want to get involved Michael Halligan, Controlled Event Solutions

Another firm which would like to bid for contracts is Controlled Event Solutions (CES), which provides security personnel to Manchester United's Old Trafford stadium for football matches there.

Its training and development manager Michael Halligan says: "These new opportunities to win contracts for the London 2012 Olympic games look very interesting, and something we will be looking at closely.

"We are very interested in winning business around the Olympic games, and anything that helps us to do that would be of great interest."

As well as providing security personnel, the Manchester-based company is also keen to look at any training opportunities that became available.

Contracts online

The consortium which is building the Olympic Stadium, including Sir Robert McAlpine, HOK Sport, and Buro Happold, has opened the new website with an advert asking for bids for a cleaning contract.

There will be many construction sub-contracts up for grabs

In addition, the Olympic organisers will list direct contractors on the London 2012 Business Network to publicise potential supply chain opportunities.

Meanwhile the clock continues to click down towards 27 July 2012 when thousands of athletes, VIPs, coaches, and spectators witness the start of the games.

The Olympics will then be followed by 12 days of the Paralympic games.

In the meantime thousands of firms are looking to find ways to win some of the many contracts up for offer.

"Ensuring there is a successful 2012 games is a huge task and at the same time a huge opportunity for firms that want to get involved," says Mr Halligan.