Over three-quarters of large businesses in the UK expect the
2012 Olympic Games to generate an increase in demand for their
goods and services, according to a new report from Deloitte, the
official professional services provider to London 2012. The
research reveals that 81% of companies across the UK anticipate an
economic boost from the Games, compared to just 38% of companies
when asked last May.
The research also suggests companies are taking the
opportunities and challenges presented by the Games far more
seriously. 87% have assessed or are currently assessing the impact
of the Games on their business, compared with 46% last year.
Furthermore, all of our 200 respondents said they intended to
assess the impact of the Games at some point before July. When
Deloitte first asked these questions in autumn 2010, 53% of
companies said they had no intention of doing so.
However, whilst these figures suggest companies are doing more
to prepare for the Games, some concerns remain. Although 81% of
companies said they expected a boost in demand, just 45% told us
they had enough information to accurately make such a forecast.
Furthermore, just 3% of companies felt they had enough information
to properly test their response plans to the Games.
Chris Loughran, senior partner at Deloitte Birmingham, said:
"Businesses in previous host cities have typically underestimated
the impact of the Olympic and Paralympic Games. It appears that
businesses both in London and around the UK are determined not to
make the same mistakes. A well prepared 'UK plc' is a vital part of
the success of this summer and it is encouraging to see so many
companies taking the Games seriously.
"54% of respondents to Deloitte's most recent CFO survey
predicted a 'double dip' recession this year. We all want to
minimise that risk - so it's even more important that business is
prepared to sustain its usual performance, and ready to take
advantage of any boost from the Games. Whilst the precise economic
impact of the Games remains a topic of much debate, what is certain
is that the best prepared and most agile businesses will grab the
biggest share of the upside."
Staff unavailability remains the biggest concern for companies
ahead of the Games, with 42% citing it as a worry, almost exactly
the same proportion as when asked last May. Concerns about security
have increased slightly with 41% now saying they are worried by
this, compared with 37% last year, whilst fears over transport
disruption have slightly decreased (32% compared with 35%).
Companies are beginning to consider the steps which might be
necessary to mitigate the impact of these issues. Our research
shows that 43% of businesses intend to review their holiday
policies ahead of the summer, whilst 33% plan to review
flexible working, compared with 33% and 14% respectively who
intended to do so at the time of our last research. Employee
engagement is also being carefully thought through with 55%
intending to install screens on working floors to allow staff to
watch their favourite events.
Furthermore, more than half of all respondents tell us they are
planning to review the security provision for their organisation
whilst a significant minority (16%) are actively considering
alternative work sites.
Loughran continues: "Over the last 12-18 months, the mindset of
local businesses over the level of preparation required for London
2012 has almost completely turned around. When we first surveyed,
two-thirds of companies expected no impact on their business as a
result of the Games. Today, just 2% feel this way which is a great
result.
"Local businesses have come a long way in recognising the need
to prepare, but some concerns remain about whether these
preparations will be robust enough. Companies aren't truly prepared
for the upside benefits if their analysis of demand consists of a
finger in the air, nor are they prepared for the downside if their
plans haven't been tested.
"Our biggest concern is that just one in five companies intends
to review their business continuity plans before the Games. Most
business continuity plans are designed to deal with one-off
incidents played out over a short period of time. With the Olympic
Games, there is the potential for several continuity challenges to
impact at the same time and for a prolonged period. With concerns
over security having increase, we would urge the 80% of companies
not currently planning to review these plans to think again and
make sure they are fit for purpose."
Urging British businesses to think beyond the Games with their
planning, Hancock added: "As we draw closer to July 27th, it is
right that businesses primary focus will be on maximising the
upside and minimising the downside to their business this summer.
However, British companies should not think that the opportunities
end with the Closing Ceremony. Businesses should begin to
consider if they are ready to take advantage of Britain's Olympic
legacy.
"With future Olympic Games and FIFA World Cups being awarded to
emerging economies such as Brazil, Russia and Qatar, there is
significant potential to capitalise on the experience developed
around London 2012. However, as with the Games themselves, only
those well prepared and ready for the opportunity will be in a
position to take advantage."