Birmingham 2022 Commonwealth Games: A golden opportunity - Mace Group
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Birmingham 2022
Commonwealth
Games:
A golden opportunityMace | Birmingham 2022 Commonwealth Games | August 2018 3
Foreword Leveraging sport for economic growth
measures which supported business the few cities that has manage to truly The West Midlands is undoubtedly London knows that international
growth were more important in the capture the benefits of the Olympics one of the most important regions of sporting events can act as a major
long term. and deliver a real host nation legacy. the UK. It has a £126bni economy, boon to trade, jobs, health and civic S T M I DL A N D S
is home to nearly six million peopleii, pride, with the London 2012 Olympic WE
When you go to Stratford today, it is Our success gave the UK a renewed and is home to more than 450,000 and Paralympic Games being one of
like visiting a completely different place confidence in its ability to deliver businesses.iii the best examples to date.
complex projects – and that has meant
Thinking back to when it was selected It is world renowned for its advanced H II D The West Midlands
that today, other areas of the UK are It is an example that Mace knows well, ET
B
has a...
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as a potential locations for the Olympic
7 ELIZA
looking to repeat 2012’s success. The manufacturing, its universities and having taken a leading role as part of
REG F
Park during the preparations for delivery model that we developed at for its food and drinks industries. It joint venture CLM to deliver the 2012
£126bn
01
D
London’s bid, the site was an unloved currently accounts for 10%iv of the
2
the Olympics and the culture that was venues, and then working closely with
industrial area, filled with polluting built between the different teams is still UK’s international exports, is home to the London Legacy Development economy.. i
industrial activity that had stifled to this day held up as an exemplar for the second largest city in the UK, and Corporation to transform the venues
connectivity between neighbourhoods others to follow. has a tremendously vibrant and young after the games.
and left a toxic legacy. population. ...it is home to nearly
Our new analysis – undertaken by At the Queen Elizabeth Olympic
The surrounding residential areas But for all of these strengths, the six million people...ii
an ex-Treasury economist – shows Park alone, developments are well
were struggling – there was high that the minimum benefit to the West Midlands does not punch at underway to create over 11,000
The 2022 Commonwealth Games in
unemployment and decades of little to West Midlands of hosting the 2022 its weight. Its GVA is less than half homes and 10,000 permanent high-
Birmingham is a golden opportunity
no investment that had left the area in Commonwealth Games would be that of London’s (its GVA is a third quality jobs. There’s also a major
to use global sport and infrastructure
need of regeneration. £1.5bn of legacy benefits in the first of London’s, GVA per head is under shopping centre, fantastic transport
investment to deliver transformational
change, a positive lasting legacy year plus £500m one-construction a half), in places it has some of the hub, West Ham’s new stadium and
Today, the park is a bright, happy highest levels of deprivation in the
and a boost to UK exports to benefits - and thats at a minimum. the largest new green park in any
place thrumming with activity. The country and residents have noticeably
the fast-growing countries of the European city - all of which would not
venues are still hosting global sporting My experience has taught me that longer times to travel to get to local
Commonwealth. exist without the Olympics. Recently
events on a regular basis, are home legacy doesn’t happen automatically. amenities. announced plans include the London ...and more than...
to West Ham, and the infrastructure Capturing legacy benefits takes hard
There are important comparisons to School of Fashion, Sadler’s Wells the
be drawn between London’s hosting
of the 2012 Olympic and Paralympic
improvements the ODA delivered have
helped to transform a neglected area
of the city and enabled much needed
work, early planning and collaboration
between stakeholders.
Simply put, there is a significant gap
between the economic performance of
Victoria and Albert Museum and the
BBC moving into the new ‘East Bank’
450,000
Games, the business boost achieved the West Midlands and the rest of the businesses iii
development.
homes to be built. This report aims to capture some of UK. London in particular creates more
and the scale of transformation that
the transferable lessons from the 2012 growth (both overall and per capita), With the potential of hosting the 2022
was delivered to East London. Thousands of new homes and Olympics and shows the size of the has more job opportunities and higher Commonwealth Games, Birmingham
millions of square feet of new prize that Birmingham and the West levels of aspiration. It has a higher
When the opening ceremony of the now has a once in a generation
office accommodation have been Midlands has within their grasp. skilled, more productive workforce
Olympic Games took place on 27 opportunity to rapidly accelerate its
delivered since 2012, creating new and attracts more investment from
July 2012, I was chief executive of the own growth and development.
neighbourhoods, improving others and If we get it right, the 2022 both home and abroad than anywhere
Olympic Delivery Authority (ODA).
providing opportunities for thousands Commonwealth Games will be so else in the UK. Why should the UK’s With the opening of a transformational Birmingham accounts for...
I spent six years working with of local people. much more than just sport – they can second city not have the same? Birmingham New Street station in
Government, local authorities and represent a landmark period of change 2015, the arrival of HS2 in 2026, and
After the Games, I was the chief and growth for an entire region and Some of London’s advantage comes
transport bodies to help deliver the the Games in 2022, Birmingham has a
executive of the London Legacy
10%
infrastructure for the Games – from help boost the UK’s global trade post- from being the capital city and some golden opportunity to create a positive of the UK’s
Development Corporation, charged Brexit. from being an international centre for international
building the Olympic Stadium itself legacy for many generations to come.
with ensuring the host boroughs got financial services. But some of the exports iv
to transport improvements at venues
the benefits of the Olympics long after benefits that London enjoys come
across the UK.
the athletes had headed home. from the decisions taken to leverage
It was a big moment for me personally, its position for economic gain. “The London 2012 Games have
I think we did a good job. East London definitively served as a catalyst for
everyone involved and the country. We Dennis Hone
is now the fastest growing area of In particular London has used the development and improvements,
were filled with a tremendous feeling Group Board Member, Mace ...and is home to the second
London, with more than 110,000 jobs power of international sporting event both tangible and intangible,
of pride of what we had delivered
together.
added since the Olympic Games –
with Newham and Hackney growing
Former Chief Executive of the to great advantage. which would otherwise have
taken decades to achieve.”
largest
Olympic Delivery Authority and city in the UK.
At that stage, most people were rightly at five times the rate we expected in In recent years it has hosted the
the London Legacy Development
focussed on the sport and Team GB’s 2012. London 2012 Olympic and Paralympic Jacques Rogge
Corporation
medal tally – but those of us who had Games, World Athletics Championship President of the International
Everywhere you look in the east of and many of the 2015 Rugby World Olympic Committee
been involved in the delivery since
the city you can see benefits brought Cups games.
the beginning were keenly aware that
by the Games – and internationally
delivering a sustainable legacy and
London is now recognised as one ofMace | Birmingham 2022 Commonwealth Games | August 2018 5
The power of capital investment The size of the prize
Examples of successful investment in Overall satisfaction of travellers through It is widely accepted that major Of the total Birmingham However, the full benefits of the
transport, retail and sports venues are New Street station increased from sporting events can bring tremendous Commonwealth Games budget, we Games are actually likely to be much
easy to see in cities across the UK. 81% to 87% in the last two years, and tangible and intangible benefits the estimate around £250m will be for more substantial. These calculations
satisfaction with the “choice of shops/ cities that host them, by boosting construction. Finer details and cost don’t quantify the full regeneration
A key example for the West Midlands eating/drinking facilities available” has trade and encouraging people to live breakdowns are yet to be confirmed, benefits. Nor do they take into account
can be found locally in Birmingham, risen from 65% to 80%. healthier life styles. including contingencies, but we the economic benefit that would be
where regeneration was kick-started calculate that from construction activity seen beyond the West Midlands to
by the renovation of the Bullring Together, better access to services We have worked with Chris Walker, a one-off economic benefits of £500m the wider UK economy, meaning that
shopping centre. and improved customer satisfaction senior economist who worked at HM could be generated from preparing for the Games would not only be a boon
provides an opportunity for substantial Treasury and the Ministry for Housing, Games, i.e. non-legacy items. and major opportunity for the West
This began a complete transformation time and wellbeing impacts for Communities and Local Government, Midlands, but for the country as a
of the city centre that continued with passengers and non-passengers alike. to undertake an assessment of the Investment and trade, whole.
the overhaul of Birmingham New possible benefits to Birmingham and
Street train station and the creation of So it’s no wonder that the public legacy item (+£1.5bn)
the West Midlands of hosting the 2022 Regeneration activity, legacy
the Grand Central retail centre, as well still want more investment with 85% Games. This is likely to be the backbone
as the ongoing development as part of wanting to see improvements in of the overall economic benefit item (+£TBC)
the Birmingham ‘Big City Plan’. infrastructure driven by higher levels of We have used baseline comparisons of the Birmingham Games, but Birmingham’s Games will be centered
investment. with the 2012 London Olympic probably more important given the on the upgraded stadium at Perry
The impact this has had on Games which have subsequently construction activity associated with Barr. Just as the London Olympics
Birmingham and the wider West With the arrival of a new HS2 station been modified to take account of the the Birmingham bid is comparatively did at Stratford, the Commonwealth
Midlands is clear. Estimates suggest at Curzon Street in under a decade’s different location, demographics, scale modest. Games Athlete’s Village will create
that over 10,000 jobs across the time, Birmingham will have another of the event and levels of proposed much needed new homes as well
region were created during the design, opportunity to transform part of its city investment. Birmingham’s plans for the Games as providing jobs and new transport
planning and construction work centre and can build on the work at also include Business Expo 2022, infrastructure in a deprived area in
associated with redevelopment of New New Street. The expected cost for the 2022 a four-year enterprise and industry need of regeneration. The successful
Street train station, Grand Central retail Birmingham Commonwealth Games programme to showcase the best of regeneration of East Manchester
centre and the Bullring. But it is also the intangible benefits is currently estimated at circa. £750 UK industry and business to a global following their Commonwealth Games
which are just as important too. million, with a quarter coming from audience. This will form a key part of demonstrates the potential impact.
Together, the retail outlets created now When a key aspiration for the West local funding sources and the rest from the economic legacy left by the 2022
support in excess of 6,000 local jobs. Midlands and the UK being boosting HM Treasury. 95% of proposed venues Games.
international trade post-Brexit, stations for the Games are facilities already in
As a result, Birmingham has moved are a front door that sets the tone for existence that will be made suitable for The Government places great BIRMINGHAM 2022
from twelfth to third in the national international investors and developers. importance in hosting sport as a
the Games with some modifications
retail rankings and has seen an 11% platform for trade and tourism as
and improvement works.
increase in its visitor economy. It now the country prepares for Brexit and
boasts close to 40 million visitors, Assuming the above, we assess the these activities will create new global
contributing over £5 billion to the minimum possible economic benefits opportunities between commonwealth
economy, each year. to be as follows: nations and key global markets from We estimate that the 2022
the USA, Middle East, China and Birmingham Games could
Construction activity, Europe.
generate at least...
non-legacy item (£500m) This means that in total we estimate
Since the redevelopment Birmingham has seen an... There will be some economic impacts
£1.5bn
that the 2022 Birmingham Games
+11%
H II D
ET
of Birmingham New Street from construction activity leading up to could generate at least £1.5bn of
B
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station Birmingham has Birmingham Commonwealth Olympics. economic benefit in the first year of economic benefit
01
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2
moved from 12th to... following the Games, as well as and...
...in visitor economy These will not be as big as London.
£500m in one-off construction benefit.
Nearly £6.8bn (three-quarters) of the
The West Midland’s annual Gross
£8.9bn London Olympics expenditure
Value added (GVA) is around £126bn,
was spent on infrastructure including
3rd venues. The new construction activity
includes building the aquatic centre
which means that a £2bn boost would
represent a 1.6% increase to GVA.
in the national
retail rankings Now boasting and upgrading the Alexander Stadium
as to increase its capacity. £500m
BIRM
INGHAM 40m in one off
annual visitors construction benefitMace | Birmingham 2022 Commonwealth Games | August 2018 7
Four lessons from the London 2012 Olympic
Conclusion
and Paralympic Games
Four years from now, for a short Doing so effectively will produce a If the delivery team can successfully do
Mace was instrumental in delivering 2. Don’t hold back on the 4. Broad political support amount of time, the whole of the huge economic benefit to the city, all of that, the Games could usher in
the London 2012 Olympic and ambition is vital to delivering the end Commonwealth – and beyond – will as this report shows. However, that a new golden age for Birmingham – a
Paralympic Games.
If you had asked people before the result be looking to Birmingham. benefit isn’t guaranteed. Many cities new dawn for the UK’s second city.
Below we’ve captured four of our key UK delivered the Olympics whether Global mega events rely on close host global sporting events and don’t
the event would be a success, many As a result, the Games offer always achieve their objectives – the
lessons that helped make it the most working between delivery teams
would have told you that it couldn’t be Birmingham a transformative key is to ensure you’re constantly
successful mega-event held in the and the politicians who control the
done. opportunity to build on its recent working to maximise the legacy
UK – each of which will be important purse-strings. That means that delivery
success and create new perceptions benefits.
in the delivery of the Birmingham 2022 teams must be conscious of the
If you had asked them if we could of the city across the globe.
Commonwealth Games. political context of their work and the
deliver a complex infrastructure That means planning ahead carefully,
different relationships between national Before that, there is a huge amount
programme as big as the Olympics, and ensuring that the whole delivery
1. Delivering complex on-time and without a single fatal
and local political stakeholders. of work to do in order to deliver the team is pulling together collaboratively.
programmes relies on good accident across the entire project, infrastructure and venues required to It means drawing from a wide range of
For Birmingham 2022, there will be
relationships most UK construction professionals a balance to be struck between the
make the Games a success. stakeholders to ensure that everyone
There are few programmes more would similarly have voiced their impact of the games in the West is on-board with contributing to the
complex than delivering large doubts. Midlands and the rest of the UK – and delivery and legacy plans.
infrastructure and venue projects to a between local and national political
hard deadline, but that’s the reality of In reality, we could do it – and we did it
funding and oversight.
global sport events. with aplomb. Ambition is a good thing,
as long as you plan carefully. Collaborative working during the ‘build’
The most important thing is phase of the process must include
building strong, high quality aligned 3. Legacy must be ‘baked-in’ working with all stakeholders across
relationships between the delivery to everything you do the political spectrum to ensure that
organisations. During the Olympics, Events like the Olympics and everyone is bought in and supportive
that was the delivery partner (private Commonwealth Games are fantastic of the process.
sector joint venture company CLM), investment multipliers, ensuring
the Olympic Delivery Authority (ODA)
and, later on, the London Organising
that money used for infrastructure
improvements delivers even better
References
Committee of the Olympic Games outcomes than you might expect.
(LOCOG).
However, for this to work every single
Those relationships allow for element of your legacy must be
collaborative working that builds trust planned in advance. For the Olympics, i. https://www.ons.gov.uk/economy/grossvalueaddedgva/bulletins/regionalgrossvalueaddedbalanceduk/1998to2016
throughout the programme, rather the ‘post-Games’ use of every venue
than different organisations pulling in and piece of infrastructure was scoped ii. https://www.birmingham.ac.uk/Documents/college-social-sciences/business/research/city-redi/west-midlands-
different directions. out before construction began, databook-2017.pdf
ensuring the maximum possible benefit
post-Games iii. http://researchbriefings.files.parliament.uk/documents/SN06152/SN06152.pdf
iv. https://www.uktradeinfo.com/Statistics/RTS/Pages/default.aspx
Chris Walker
The new economic modelling commissioned by Mace in this report was
done by Chris Walker. Chris Walker is an independent consultant economist
and associate of WPI strategy. He has worked across a range of sectors
and with local, devolved and national government. Chris is a former HM
Treasury economist and senior economic adviser at the Minister for Housing,
Communities and Local Government.Mace Enterprise House 115 Edmund Street Birmingham, B3 2HJ +44 (0)121 212 6100 3rd Floor East Eastgate, Castle Street Castlefield Manchester, M3 4LZ +44 (0)161 835 3565 155 Moorgate London EC2M 6XB +44 (0)20 3522 3000 www.macegroup.com
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