Birmingham 2022 Commonwealth Games: What Next?

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Birmingham 2022 Commonwealth Games: What Next? Understanding The Legacy for Local Businesses August 2023 Connect. Support. Grow.

Foreword

Summary

Recommendations for Stakeholders

Recommendations for future host-city Chambers of Commerce

Section 1: Analysis of the B2022 Business Barometer

Section 2: Observations from the business community

Section 3: Analysis of Games Impact and Wider Context

Section 4: Recommendations for Stakeholders

Thank you to the over 400 local businesses that participated in this research, including our interview and focus group participants: Paul Bunce, Commercial Manager, Conference Aston | Janey Bingham, Commercial Director, Holiday Inn | Tracey Stephenson, Managing Director, Staying Cool | Joanne Gray, General Manager, Staybridge | Suzie Branch-Haddow, Vice Principal of External Development, BMet College | Abigaile Bromfield, Director, Arup | Ed Grigg, General Manager, Incorporatewear | Matthew Hammond, Senior Partner, PWC | Ruth Griffin, Partner, Gowling | Charles Brant, Relationship Development Manager, Gowling | Cathy Gilbert, Director of External Affairs, University of Birmingham | Helen Toft, Head of Marketing and Communications, University of Birmingham | Daniel Nikolla, Marketing Manager, Hardy Signs

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Foreword

Were the Birmingham 2022 Commonwealth Games worth it?

It is the question of the moment as we mark one year on from the Games. Further fuelled, of course, by the Victorian Government’s shock decision to pull out of hosting the 2026 Commonwealth Games.

At the Chamber, it is a question that we have been asking local businesses through a series of surveys, conducted before and after the Games, and interviews. The results are both strikingly positive and raise implications for both local stakeholders and future host-city Chambers of Commerce for any major sporting events.

Economic impact is the much sought-after ingredient that makes the business case for hosting any major sporting event viable. The West Midlands welcomed a record 141.2 million visitors in 2022 with the Commonwealth Games a key driver, all the more impressive when you think we were still coming out of pandemic restrictions at the start of the year. The official interim evaluation report on the Games pointed to over £870m GVA contributed to the UK economy up to January 2023 and over half of that coming into the West Midlands.

The pipeline of businesses interested in the region built up by the West Midlands Growth Company through the Games’ Business & Tourism Programme continues to attract new investment. The programme is designed to secure more than £650 million of new overseas investment into the UK and create £7 million of additional export deals until 2027.

While the official statistics are impressive, as the leading organisation representing and engaging Greater Birmingham’s businesses, we believe that a vital way to test the impact and legacy of the Games is to ask businesses themselves.

Throughout the three-year span of this research, we have used the insights gathered to influence our own activity, whether it be in our engagement with, and key messages to, Games stakeholders or the content of our own events and communications with the over 2,500 members we represent. We are now delighted to be sharing these insights as part of our contribution to the Games legacy.

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GAMES:

Key Findings: The B2022 Business Barometer

Pre-Games: February 2022

• 91% of businesses in Greater Birmingham felt Birmingham Commonwealth Games 2022 (B2022) would have a positive impact on the city region in the short term (0-3 years)

• 71% of businesses in Greater Birmingham believed B2022 would have a positive impact on the city region in the long term (3 years +)

• 41% of firms in the city region felt B2022 would have a positive impact on their business in the short term (0-3 years)

• 27% of businesses in the city region felt Birmingham 2022 would have a positive impact on their business in the long term (3 years +)

Post Games: May-June 2023

• 80% of businesses believed that B2022 has had a positive impact on the city region to date

• 66% of businesses thought that B2022 would have a positive impact on the city region in the next 3 years

• 32% of businesses felt B2022 has had a positive impact on their business to date

• 21% of firms expected B2022 to have a positive impact over the next three years

• 3% of firms were a supplier into the Birmingham 2022 Games (direct contract) and 6% were a supplier into the Birmingham 2022 Games (indirect contract/supply chain)

• 44% of businesses were interested in activity related to the social legacy of the Games

Key Findings: Interviews & Focus Group

Civic pride & global reputation: businesses reported involvement in the Games as a supplier, partner or through supporting voluntary activity generated significant workforce engagement and civic pride. Many commented on the positive impact of the Games on changing perceptions and boosting the city and region’s international reputation.

Winning work during and after the Games: a number of firms that were interviewed had secured work from the Games – either via the official procurement process, indirectly via supply chain engagement or through supplying Games visitors. Many these firms either had secured, or now felt better able to secure, more work as a result of the positive exposure they received from their involvement in the Birmingham 2022 Commonwealth Games.

Partnerships & Collaboration: several firms noted that during the Games the level of partnership working and collaboration was the highest that they have ever seen, and as a result, new partnerships have been forged, generating wider commercial or civic opportunities.

Commitment to legacy: Every roundtable participant and interviewee engaged in this research referenced the importance of harnessing the various legacy opportunities associated with the Birmingham 2022 Commonwealth Games, across economic, social and organisational pillars.

Uncertainty: what happens next? whilst there was, and still is, a great deal of optimism in the aftermath of the Games, some businesses raised that they would be keen to see a commitment to ongoing partnership working across the public and private sectors to ensure that the region maximises the ongoing opportunities established by the Birmingham 2022 Commonwealth Games and uncertainty on what the legacy strategy is.

Summary
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BIRMINGHAM 2022 COMMONWEALTH GAMES: WHAT NEXT?

Recommendations for Stakeholders

1. Communication is Critical: our results indicate a decrease in the proportion of businesses identifying a positive impact from the Games as time passes. Some interview participants and comments provided by businesses suggest a lack of awareness of Games related strategy, opportunities and impact post-Games. Build on the partnership working shown during the Games to continue to collaboratively and consistently communicate the impact of Games legacy and how local businesses can engage with it.

2. Maintain the Momentum: businesses want to see the platform of the Games driving tourism, investment, business opportunities and positive outcomes for local people. Build upon the initial success of the Business and Tourism Programme, Birmingham 2022 Commonwealth Games legacy programmes and lessons learned from major programmes on transport and skills, embed and align them with regional strategies and demonstrate their role in the Levelling Up agenda.

3. Prioritise Local Business Engagement: Across every area of Games legacy, from economic to social impact, local businesses are critical. They are the wealth creators, employers, among key place makers and community anchors. Ensure local business engagement is central to ongoing Games legacy strategies and activity.

“We were involved in supporting businesses for the Commonwealth games and overall the event was greatly received and gave a short term economic boost to both us and the wider city.”

B2022 Business Barometer participant: Services firm with 107 members of staff

“Having met many international business links, the city’s image has greatly improved and our international reputation is growing”

B2022 Business Barometer participant: Services firm with 15 members of staff

“For us, it was more than just another corporate partnership but something which we felt could create significant positive impact through the enjoyment of a broad range of people based activities.”

“As a business we had the best ever July and August period by 15% - it was amazing! The perception of the city has gone through the roof”

“Our new owners have invested over £15 million in new systems and a new office refurbishment in Oldbury. The Commonwealth Games was the springboard and now the legacy is for us.”

“It was fantastic to showcase the region, the buzz was terrific for people that live and work here”

B2022 Business Barometer participant: Manufacturing firm with 175 members of staff

“I realise that the Commonwealth Games was a unique, exceptional event to boost our tourism pull, but what is the strategy to build on this?”

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Recommendations for future host-city Chambers of Commerce

1. Start early and build key relationships. Use the experience of past-host city Chambers of Commerce to inform your planning. Identify key people and stakeholder groups for engagement with or participation in and build those relationships early. We would recommend that future host-cities build local business engagement and communication activity into their planning from the start and resource it accordingly.

2. Keep in touch with your members. Whether through surveys or more informal engagement, continually check in on their perceptions and experiences of the Games, identify any priority areas or potential pinch points early and seek to mitigate them though proactive communication and engagement activity.

3. Understand the nature of procurement opportunities & advocate for social value criteria. Work with Games stakeholders to champion breaking down contracts in to lots suitable for SMEs to bid for. In our experience, this is not possible for all areas and a number of key direct contracts will be large, complex to bid for and in many cases, won by those with direct previous experience of supplying major sporting events. Advocate for social value criteria that places an onus on contractors to work with local firms (as was the case for B2022). Many of these supply chain opportunities may not be advertised on procurement portals, making communication between large Games suppliers and local businesses on the products and services they are seeking and how to engage with them, essential.

4. There’s more to Games opportunities than contracts. Not every business will benefit from contracts, but most businesses can benefit from the opportunities to engage their employees and tap into the civic pride generated. This could include supporting employees in volunteering, hosting customers or colleagues at Games events, building new partnerships or engaging with legacy programmes to support a positive social impact. At the GBCC, we love local and we also go global, giving our members the tools to trade internationally. We used the Games as a springboard for building relationships with partners in Commonwealth nations including signing five formal memorandums of understanding on facilitating bilateral trade. We continue to see positive outcomes for local businesses from these partnerships.

5. Get stuck in - don’t let the opportunity pass you by. You may find that momentum around the event only really builds up in the wider business community in the weeks or months leading up to the Games. Don’t let that phase you and ensure you continue to plan and engage early. As well as your external role, ensure you get stuck in as an employer. In addition to our work with the business community, the GBCC ensured our colleagues had the opportunity to engage with the Games, purchasing tickets to Games events and holding internal ballots for colleagues to attend as our guests. We also became a partner in Pride House, to support their work to engaging the business community in welcoming LGBTQ+ individuals and allies during the Commonwealth Games.

6. Be proactive on what happens next. As our research has shown, the need for proactive communication and engagement does not end with the Games. Build into your plans and stakeholder engagement activity what you want to see happen next to ensure positive legacy outcomes for your members and local businesses.

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COMMONWEALTH GAMES: WHAT

Section 1: Analysis of the B2022 Business Barometer

Introduction

The GBCC’s Quarterly Business Report is the largest and most comprehensive regular business sentiment survey in the city-region. We receive responses from between 200 and 400 local businesses each quarter and include additional topical questions on major events and opportunities, including the Games Business Barometer. A series of questions were included in the Q1 2020 Quarterly Business Report which tracked business sentiment towards the upcoming Games Local firms were asked to assess the likely economic impact on the city region and their business in both the short and long term. In addition, businesses were also asked their views on areas of interest and participation around the Games In order to conduct baseline analysis, the same set of questions were included in the Q1 2021 and Q2 2022 Quarterly Business Report which allowed to track sentiment on an annual basis and explore trends in the responses we received.

Following the culmination of the Games in July and August 2022, an additional set of questions were included in the Q3 2022 Quarterly Business Report and Q2 2023 Quarterly Business Report which gathered feedback from local businesses on the economic impact the Games had had to date, the likely long term impact B2022 is likely to have on their business and to ascertain which of the legacy elements of the Games were likely to be of most interest to the business community. An additional free text question was included in the Q2 2023 Quarterly Business Report which allowed us gather further qualitative data to compliment the statistical feedback we received from local firms. A summary of both the Pre-Games and Post-Games analysis is included below. The full breakdown and analysis to each question can be found in the appendix of this report.

Pre-Games – statistical research findings

• Analysing the impact of the Birmingham 2022 Commonwealth Games for the city region and business community

In total, 91% of businesses surveyed in Q1 2022 expected the Birmingham 2022 Commonwealth Games to have a positive impact on the city region in the short term (0-3 years) – an increase of 12% compared to Q1 2020. In addition, 71% of businesses expected the Birmingham 2022 Commonwealth Games to have a positive impact on the city region in the long term (3 years plus), however, by contrast this was 9% lower than the figure recorded at the start of 2021 and 2020. 41% of firms felt the Birmingham 2022 Commonwealth Games would have a positive impact on their business in the short term (0-3 years), a 6% increase compared to the number recorded in Q1 2021. According to data collected at the start of 2022, 27% of businesses expected the Games to have a positive impact on their business in the long term – the same percentage was recorded a year earlier.

Positive expectations of the anticipated impact of the Games must be framed within the wider socioeconomic outlook for the region and the impact of the twin headwinds of the COVID-19 pandemic and Brexit. Given the structural makeup of the regional economy, it was no surprise to see the West Midlands suffer greater economic hardship during this two-year period compared to other parts of the country. Data released by the ONS revealed that the “2020 shock” of Covid-19 and Brexit saw output fall by £11bn in the Midlands and West Midlands exports fall by 25.3% between 2019 and 2020 – the highest year on year percentage fall in total exports across any region in the UK, driven by a 26.5% decrease in trade in goods in the manufacturing industry and a 77.6% fall in trade in services in the accommodation and food service activities industry i. As late as Q1 2022, significant uncertainty remained as to whether the Games would be able to go ahead as planned due to COVID-19 restrictions. International travel restrictions were only lifted in March 2022.

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2022 COMMONWEALTH GAMES: WHAT

• Areas of interest and participation for local businesses ahead of the Birmingham 2022 Commonwealth Games

At the start of 2020, 39% of businesses expressed an interest in bidding for contracts related to the Birmingham 2022 Games, a figure which increased by 6% in 2021, however this fell to 27% at the start of the following year – by which time the majority of major contracts had been issued. 49% of the businesses surveyed in 2022 expressed an interest in becoming a part of the wider Games supply chain, a fall of 7% compared to the figure recorded for 2021. 40% of firms surveyed in 2022 were interested in developing links with Commonwealth countries – a fall of 4% compared to 2020. However, interest in supplying to other major sporting events increased slightly between 2020 and 2022; 44% of businesses surveyed in 2022 conveyed an interest in becoming a supplier to other major sporting events, compared to 43% in the same reporting period in 2021 and 2020.

Civic involvement in the Games, notably through volunteering, figured highly with 43% of firms in 2022 noting an interest in learning about volunteering opportunities, despite a fall of 9% compared to 2020. 54% of businesses interviewed in 2022 were keen to learn about how to the use Games to boost levels of staff engagement (a fall of 7% compared to 2021) and 61% were keen to learn about the community and surrounding arts festivals (compared to a figure of 68% recorded in Q1 2021). Three quarters of businesses in 2022 were keen to understand expected disruption to travel during the Games (one percent lower than the equivalent period in 2021). This was perhaps not a surprise given the impact of congestion on the city; a study released by Inrix in January 2023 found that congestion in Birmingham cost the average driver £646 and the city £346 million in 2022 ii. It was interesting to see that half of the businesses surveyed at the beginning of 2022 wanted to buy tickets for staff – a 17% fall compared to 2020 which could suggest weakening interest in the upcoming Games or uncertainty over the prospect of their delivery, however, context again is key.

At that point in 2022, the national and regional economy faced new challenges as Russia’s illegal invasion of Ukraine fuelled a cost-ofliving crisis and energy prices surged, leading to a notable fall in consumer spending levels. Covid-19 restrictions were slowly being lifted at the start of 2022 following the outbreak of the Omicron variant, however, over the previous 12 months, several major sporting events had been significantly disrupted, including the Tokyo 2020 Olympics which were held behind closed doors. As a result of this wider economic disruption, the business community was dealing with a great deal of uncertainty as we approached the Games in the summer of 2022.

Post-Games statistical research findings

• Reflecting on the economic impact of the Commonwealth Games

Further surveying of the local business community took place between 22nd August and 12th September 2022 and once again between 15th May and 7th June 2023. In May-June 2023, 80% of businesses felt that the Games had had a positive impact on the city region to date (a fall of 10% compared to August-September the previous year); 66% of firms surveyed expected the Games to have a positive impact over the coming three years (a drop of 6% compared to 2022) and a further 42% believed the Games would have a positive impact in the long term (3 years plus) compared to a figure of 46% recorded in 2022. All of which points to the immediate uplift the Games had created, driving positive sentiment across the wider business community.

In 2023, 32% of respondents noted that the Games had had a positive impact on their business to date (a fall of 6% compared to the previous year); 21% of firms surveyed also expected the Games to have a positive impact on their business over the coming three years (an increase of 1% in relation to 2022) and 16% felt the Games would have a positive impact on their business in the long term (3 years plus) – the same figure was recorded in 2022.

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• Business engagement around the Birmingham 2022 Commonwealth Games

In May-June 2023, a quarter of businesses mentioned they had attended a Chamber of Commerce event or webinar related to Birmingham 2022 (up from the 20% recorded in AugustSeptember 2022). 15% of firms promoted Games activity (Festival 2022, Festival Sites, community events, Getting Games Ready programme, Commonwealth E-Sports Championships) to their staff and customers. 12% of firms surveyed supported staff in volunteering for the Games or Pride House. 7% of firms purchased tickets and entertained clients at a Games event and 9% purchased tickets and entertained staff at a Games related event. 6% of firms interviewed in June 2023 were suppliers to the Games (via supply chain activity) and 3% of businesses were a supplier to the Games as they secured a direct contract from the Organising Committee.

4% of firms attended official UK House events during the Games, and 3% entertained clients or staff at a Games Festival site, Queen’s Baton relay or free Games sporting event. In addition, 4% used Get Set for the Games information to plan travel routes for staff and customers. In total, 3% supported a Gen 22 or Games Legacy Programme. Just over half of respondents (52%) said they did not engage with the Birmingham 2022 Commonwealth Games.

• The Legacy elements of the Birmingham 2022 Commonwealth Games that were of most interest to local businesses

Looking ahead, in May-June 2023, 44% of firms expressed a direct interest in participating in social legacy activity related to the Games –such as supporting youth employment and development, and diversity and inclusion (a 10% increase compared to August-September 2022). 30% of businesses were keen to develop trading opportunities between their business and partners in Commonwealth nations (an increase of 7% compared to the previous year). 28% of firms reported an interest in accessing local procurement opportunities (a figure of 22% was recorded in August-September 2022) and 30% of businesses were interested in participating in arts and cultural legacy activity such as supporting local festivals and arts institutions (compared to the 19% listed in August-September 2022).

23% of businesses surveyed in May-June 2023 referenced an interest in the sporting legacy of the Games, such as supporting local sports clubs (a figure of 12% was listed in AugustSeptember 2022) and 5% were keen to be involved in shaping conversations over the use of the public realm (down from 13% recorded in August-September 2022). One area of particular interest amongst the business community related to attracting future major events to the city region (42% identified this as an area of interest in May-June 2023 compared to 33% in AugustSeptember 2022) and 10% of firms were keen to explore accessing opportunities to supply to major sporting events across the globe. More broadly, with Birmingham hosting the inaugural Commonwealth Esports Championships and Commonwealth Esports Forum in August 2022 and bidding to host the European Athletics Championship and the Invictus Games before the end of the decade, the city is now primed to deliver events of this scale and maximise the wider economic benefits they bring.

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In May-June 2023, survey respondents were asked: Please share any further comments, feedback or examples on your organisation’s experience of the Birmingham 2022 Commonwealth Games or Games/major sporting event related activity your organisation has been involved in since the Games?

A selection of responses are included below:

“We were involved in supporting businesses for the Commonwealth games and overall the event was greatly received and gave a short term economic boost to both us and the wider city.”Services firm with 107 members of staff

“Having met many international business links, the city’s image has greatly improved and our international reputation is growing” – Services firm with 15 members of staff

Section 2: Observations from the business community

Introduction

In order to inform the quantitative analysis that had been gathered from the B2022 Business Barometer, a programme of qualitative engagement was undertaken with members of the business community. The participants that took part in these ‘depth’ interviews and roundtables worked for businesses that had either directly won contracts from the Organising Committee, had been an official sponsor or partner for the Games, been involved in supply chain activity related to the Games or finally, were from sectors expected to have benefitted from additional footfall and spend in the region as a result of the events that took place last summer.

“It was fantastic to showcase the region, the buzz was terrific for people that live and work here” –Manufacturing firm with 175 members of staff

While the majority of responses were positive, a small number expressed frustration with the tendering processes for the Games or concern regarding a perceived lack of legacy impact:

“Very disappointed as smaller businesses not able to compete and complete complex tendering processes. Dominated by National Contractors.” - Retail or wholesale firm with 85 members of staff

“There has not been sufficient legacy impact from the Games on the region.” - Services firm with 20 members of staff

A virtual roundtable was held on the 7th June 2023 and participants included a number of businesses from the hospitality industry in the city, these included:

• Paul Bunce, Commercial Manager, Conference Aston

• Janey Bingham, Commercial Director, Holiday Inn

• Tracey Stephenson, Managing Director, Staying Cool

• Joanne Gray, General Manager, Staybridge

Furthermore, a series of one-to-one interviews took place between 18th June 2023 and Wednesday 5th July with the following participants:

• Suzie Branch-Haddow, Vice Principal of External Development, BMet College

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• Abigaile Bromfield, Director, Arup

• Ed Grigg, General Manager, Incorporatewear

• Matthew Hammond, Senior Partner, PWC

• Ruth Griffin, Partner, Gowling

• Charles Brant, Relationship Development Manager, Gowling

• Cathy Gilbert, Director of External Affairs, University of Birmingham

• Helen Toft, Head of Marketing and Communications, University of Birmingham

• Daniel Nikolla, Marketing Manager, Hardy Signs

Transcripts of roundtable discussions and interviews with each of these organisations can be found in the appendix to this report. What follows below is a summary of the main themes highlighted by the various participants.

Key Observations:

Civic Pride and Global Reputation – Virtually all roundtable and interview participants referenced the manner in which the 2022 Commonwealth Games fuelled a sense of civic pride across the wider business community and within their own organisations. In particular, a number of organisations reflected on the positive benefits that were derived from staff members volunteering in various Games related activity. Official statistics released by the Birmingham 2022 Commonwealth Games Organising Committee revealed that 40,000 new jobs and volunteering opportunities had been created by the Games, with 14,000 volunteers participating in a single integrated programme covering all of the delivery partners. Over 7,000 people trained for roles in catering, cleaning and waste and 30,000 hours of social action assignments were created for young people (aged between 16-24), designed to include young people who face barriers iii

“When you ask how [our organisation] benefitted from the Games, I can confidently say that the answer is a great deal of pride.” Suzie Branch-Haddow, Vice Principal of External Development, BMet College

“For us, it was more than just another corporate partnership but something which we felt could create significant positive impact through the enjoyment of a broad range of people based activities.” Matthew Hammond, Senior Partner, PWC

“As a business we had the best ever July and August period by 15% - it was amazing! The perception of the city has gone through the roof”

Staying Cool

“The pride we all felt during the Games time was immense. Hosting the squash and hockey on campus created a real party atmosphere. During this time our cultural collections were open, strengthening our ties with local communities as well as those further afield; for instance, the Lapworth Museum had 3500 new visitors over the 11 days of the Games.” Cathy Gilbert, Director of External Relations, University of Birmingham and Helen Toft, Assistant Director, Research Strategy and Services, University of Birmingham.

“The reputation, perception and brand of the city has changed hugely and positively on the international stage.” Matthew Hammond, Senior Partner, PWC

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Winning work during and after the Games: a number of the firms interviewed indicated that they had secured work from the Games – either via the official procurement channels or indirectly via supply chain engagement or supplying Games visitors. Many of the firms that had secured work on the Games felt they were now primed to secure more work given the positive exposure they received from their involvement in the Birmingham 2022 Commonwealth Games. As referenced previously, 9% of firms surveyed in the Q2 2023 Quarterly Business Report secured work on the Games (either directly or via supply chain activity).

Official Government data reiterates the economic impact of the Games. By January 2023, the Commonwealth Games had already contributed £870.7 million to the UK economy, with over half of the economic impact generated (£453.7 million) benefitting businesses and communities across the region. A record 1.5 million tickets were sold for Birmingham 2022, the largest multisport event hosted in England in 10 years and more than 5 million people visited Birmingham during the two weeks from 25th July – a 200% increase on the same period in 2021 iv .

“We were a direct beneficiary of being involved in the supply chain. After being successful in our [tender] bid, we were responsible for supplying flags and banners to Sandwell Council and Birmingham City Council which were displayed around the city and region displaying graphics to do with the Games.”

“This was not just another piece of legal work, it represented so much more. How seriously we took our involvement in the Games was shown by the fact that our UK CEO, David Fennell, was a key member of the bid team that ultimately were successful in being appointed as Official Legal Advisors for the Birmingham 2022 Commonwealth Games and as a sponsor of the Games.”

“Winning the Commonwealth Games contract was a real cause for celebration as most of our 85 members of staff are local, so it was a fantastic way for us all to feel included. The delivery of 14,000 plus kit might seem intimidating but what it showed is that we could deliver a major project on a massive scale, on time and in full… You can see the success we are now having on the back of the Games as we have just secured the contract of supplying the uniforms to Subway. The Games were crucial in providing confidence to potential clients that we are serious operators.”

“As a result of the Games we have secured partnerships over a three-year period in tangible contacts.” Paul

Partnerships & Collaboration: several firms noted that the level of partnership working and collaboration was the highest that they have ever seen during the Games, and as a result of this collaborative effort, new partnerships were forged which have created wider commercial opportunities.

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“[The] Games allowed us to focus around a common cause and a hard deadline. Going beyond the Games we are collaborating [with partners] in other areas of importance for the region, such as the skills gap and sustainability. I think these relationships changed fundamentally during the Games because we all had a common purpose. It has accelerated those relationships with partners by about five years!” Cathy Gilbert, Director of External Relations, University of Birmingham and Helen Toft, Assistant Director, Research Strategy and Services, University of Birmingham.

“For us we continue to develop strong working relationships off the back of B2022 with other sponsors/supporters of the Games, such as the University of Birmingham, PWC, Aston University, Bruntwood and Severn Trent” Ruth Griffin, Partner, Gowling and Charles Brant, Relationship Development Manager, Gowling

“We collaborated closely with leaders from across our clients some of whom were also sponsors to support their work, including the likes of University of Birmingham, Eon and Severn Trent. The collective focus on ESG, social mobility, inclusion and diversity and more were an example of purpose led collaboration.” Matthew Hammond, Senior Partner, PWC

Commitment to legacy: Every roundtable participant and interviewee engaged in this research referenced the importance of harnessing the various legacy opportunities associated with the Birmingham 2022 Commonwealth Games, especially across economic, social and organisational pillars. The feedback also tied into the broader objectives around the Organising Committee’s legacy mission pillars which are reflected in the various programmes which have been set up to embed the long-term legacy of the Games. Areas of focus include learning, creative and cultural participation, jobs and skills, business and tourism, community cohesion, inclusion and pride, volunteering, sustainability and physical wellbeing and social value.

“I think when we talk about legacy there are three different component parts which I want us to focus on- the physical legacy, the community legacy and the organisational legacy. I know we have spoken in depth in terms of organisational legacy; we formed an award-winning public and private partnership which helps bring investment into the city.” Abigaile Bromfield, Director, Arup

“A highlight was hosting businesses at UK House, in our Exchange Building in Centenary Square, which welcomed over 1,000 businesses and investors. We also partnered with the Business and Tourism Programme (BATP) for the region and delivered sessions throughout the week including on Education

Day on the theme of science, business and policy for environmental action.” Cathy Gilbert, Director of External Relations, University of Birmingham and Helen Toft, Assistant Director, Research Strategy and Services, University of Birmingham.

“As part of the legacy, we want to become part of the Youth Charter Community Campus- a model that provides social, culture and economic opportunities for young people across all 6 continents. The aim is to have a global network of campuses. We are also looking to build an inclusive campus at our Sutton Coldfield site for disability sports.” Suzy Branch Haddow, Vice Principal of External Development, BMET

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Uncertainty: what happens next? whilst there was, and still is, a great deal of optimism in the aftermath of the Games, some businesses raised that they would be keen to see a commitment to ongoing partnership working across the public and private sectors to ensure that the region maximises the ongoing opportunities established by the Birmingham 2022 Commonwealth Games. Many of the participants welcomed the joined-up approach taken by stakeholders across the region to make the Games such a spectacular success – organisations such as The West Midlands Growth Company, Visit Britain,

Birmingham City Council, Transport for West Midlands and the West Midlands Combined Authority and various Universities and Colleges were all namechecked across different interviews. However, a general sentiment emerged that this level of interaction between different partners will need to be channelled and built upon if we are to further propel the image of the region on the international stage and drive more investment into the region.

“I realise that the Commonwealth Games was a unique, exceptional event to boost our tourism pull, but what is the strategy to build on this?”

“Focusing on the forward look we do need to see collaboration with partners moving forward, particularly if we want to enhance the tourism appeal of Birmingham.”

Section 3: Analysis of Games Impact and Wider Context

This section explores the wider impact of the Games and the context in which they took place, utilising official impact assessments and reports.

1. Attracting Investment:

The Business and Tourism Programme (BATP) has already played a vital part in leveraging the

“Our new owners have invested over £15 million in new systems and a new office refurbishment in Oldbury. The Commonwealth Games was the springboard and now the legacy is for us.”

2022 Commonwealth Games to cultivate positive perceptions of the region on the international stage, with the ultimate aim to drive long term economic benefits across the region. The programme aims to secure more than £650m in new overseas investment into the UK and create an additional £7 million of additional export deals until 2027. The BATP is also expected to play a part in attracting thousands of extra visitors to the region and UK until 2027, which will also play a vital role in increasing visitor spend. The programme is also anticipated to create almost 600 new jobs in the West Midlands v

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Ultimately, the BATP will play an important part in driving foreign direct investment (FDI) in the region. Data released by the Department of Business & Trade revealed that across the 2022-23 financial year, the UK had attracted 1,654 projects, an increase of 4% compared to the previous year. Whilst nationally, job creation had fallen by 6.1% in the same time period, this trend was not reflected in our region. The West Midlands saw the highest year on year growth of any region in terms of FDI projects, rising from 143 in 2021-22 to 181 in 2022-23, and the number of jobs created by these projects went up by 48.1% between the two financial years (from 5,571 to 8,252) vi

Of course, much of this was predicated on the success of the Birmingham 2022 Commonwealth Games – the key is now to maintain and build upon this legacy, especially given the long term challenges our region’s exporters have faced. A central pillar of the BATP focusses on driving export activity in our region. In 2019, the Midlands exported £56bn of UK goods, however this value fell by over 10% in 2020 to a figure of £45.6 billion which in itself was five times higher than the national average decline of 2% vii. In addition, the BATP will play a key role in supporting businesses looking to build a presence in the region, helping win event bids and returning visitors to the region.

2. Levelling Up the Region

In February 2022, Michael Gove unveiled the Government’s much vaunted Levelling Up White Paper which set out a plan intended to transform the UK by spreading opportunity and prosperity to all parts of the country. Within Birmingham and the wider city-region, the success of the Commonwealth Games must be used to catalyse a decade of long-term economic growth which will culminate with the arrival of HS2 – in essence, a reconceptualization of the so called ‘golden decade’ of opportunity (as the period between 2009 and 2019 is often referred to). Following the success of the Games, an opportunity exists

to further strengthen its ability to attract more investment and further devolved funding – both central pillars of the Levelling Up agenda.

The Games proved that regional and national actors can work together to deliver a world leading event on time and on budget. If anything, this strengthens the image of Birmingham on the international stage and will help attract major events (both sporting and cultural) to the city region – all of which lends itself to driving long term commercial opportunities and greater private sector investment. During the Games, the spotlight shone on the region like never before; not only did millions of people visit the city during the duration of the Games but Birmingham 2022 events had an estimated total global viewership of 834.9 million and over 215 million digital views and 141 million interactions on social media viii

The West Midlands Combined Authority (WMCA)’s trailblazer deeper devolution deal that was published in March of this year credits “the great success of Birmingham and the WMCA hosting the 2022 Commonwealth Games” in setting out plans for Government and the WMCA to collaborate on a proposal for the West Midlands to bid to host the 2027 World Intelligent Transport Systems Congress, alongside intentions to “strengthen and deepen” the partnership between WMCA and DBT ix . This indicates that the immediate success of the Games is also likely to strengthen the region’s hand in negotiating for future devolved funding from central Government. Regional actors have already demonstrated their commitment to levelling up by securing around £70m of unspent Commonwealth Games funding from Government to realise the Games’ legacy ambitions, in particular boosting its trade and tourism sectors and it demonstrates a real vote of confidence from Government to deliver for the citizens of the West Midlands.

BIRMINGHAM 2022 COMMONWEALTH GAMES: WHAT NEXT? UNDERSTANDING THE LEGACY FOR LOCAL BUSINESSES 15

Finally, the reinvestment of funding in the city region will further prime the West Midlands to maximise the benefits of HS2 when construction of Phase One is likely to be completed at the start of 2032. The region is already benefitting from the transformative impact of the project, with 8,800 people currently working on HS2 in the West Midlands and with £1.7bn worth of projects gone to businesses in the West Midlands. Once delivered in full, the project is expected to create 175,000 jobs for the region x– maintaining and building upon the momentum created by the 2022 Commonwealth Games is going to be essential to realising this ambition and enabling residents to access these new opportunities.

3. Economic Recovery & Growth

With the regional economy hit by the twin headwinds of Brexit and Covid-19, the WMCA’s West Midlands Plan for Growth sets out a path to return to the growth trajectory of 2009 to 2019 which saw the West Midlands as the fastest growing region outside of London. The Plan for Growth focusses on driving prosperity through enhanced transport investment, housing and land investment, new approaches to regeneration, tackling skills gaps, working with overseas investors and realising the region’s net zero ambitions. The plan also identifies eight sector clusters which are seen as being key to the region’s future prospects: manufacturing electric vehicles, modern and low carbon utilities, logistics and distribution, manufacturing low carbon homes, professional and financial services, health and medical technology, aerospace and creative content production.

There are clear complimentary and strategic alignments of the Plan for Growth with the legacy ambitions of the Commonwealth Games. Firstly, unspent Commonwealth Games funding was used to bolster the strategic ambitions for the Plan to Growth. The WMCA developed a Commonwealth Games Legacy Enhancement Fund to invite high-growth potential businesses,

including those in Games supply chains, to join an accelerator programme. The overall aim of this programme is to contribute to the development of the clusters listed above and ultimately, create up to 45,000 new jobs xi. Secondly, an important part of the BATP’s investment activity is closely aligned with the West Midlands’ priorities for growth in sectors such as future mobility, data-driven healthcare, creative technologies, modern business services, the sports economy and e-commerce and tourism. From an events perspective, hosting the inaugural Commonwealth Esports Championships and Commonwealth Esports Forum will only add to the region’s pre-eminence in this field.

However, there are challenges associated with delivering growth in these clusters. Research gathered as part of the West Midlands and Warwickshire Local Skills Improvement Plan revealed that the West Midlands lags significantly behind the rest of the UK’s basic digital skills xii –despite reportedly having the country’s fastest growing tech sector. The strategic alignment of the legacy of the Games with the WMCA’s devolved powers over Adult Education funding has allowed the region to maximise jobs and skills opportunities from the Games; in 2021, £1.1 million was designated to provide higher level skills training to ensure individuals and companies were ready for the Games and build longer term structures for growth.

Furthermore, initiatives such as the Jobs and Skills Academy, which acted as an umbrella for all employment and training programmes linked to the Games played an important part in strengthening the talent pool of the local workforce, strengthening their skillsets and boosting employment opportunities. Regional stakeholders should learn from this model and where appropriate, look to replicate it to help to tackle the skills gaps which exist in the targeted growth clusters.

BIRMINGHAM 2022 COMMONWEALTH GAMES: WHAT NEXT? UNDERSTANDING THE LEGACY FOR LOCAL BUSINESSES 16

4. Transport & Modal Shift

The 2022 Commonwealth Games occupies another unique position in that it became the first ever carbon-neutral Commonwealth Games, underpinned by a commitment to ensure the Games left a positive environmental legacy for generations to come. The Social Value Charter published as part of the Games also focussed heavily on sustainability and net zero. The broader transport & infrastructure investments which materialised as a result of the Games must be fully realised in order to compliment Birmingham City Council’s aspiration to reach net zero by 2030 and for the West Midlands Combined Authority to reach its ambitions of net zero across the wider region by 2041.

Ahead of the Games, spectator transport was expected to contribute over 55% of the Games forecasted carbon footprint and as such, spectators were encouraged to make the most of public transport. A public investment of £778m also helped to create a physical legacy for the Games (with notable investments in Sandwell Aquatic Centre, Alexander Stadium, Sutton Park and Cannock Chase). Accessing these sites via public transport proved to be popular amongst

visitors. According to data published by Transport for West Midlands in 2022, more than 650,000 spectator journeys were made on shuttle buses, Birmingham New Street station recorded its busiest day since opening (with over 255,000 passengers passing through on August 6th 2022), the West Midlands Metro patronage doubled its pre-Covid numbers and bikes and e-bikes received 28,000 rentals during the Games.

In total, 64,910 parking spaces were booked through the park and ride services across the region. Thousands of individuals also made use of regular local bus, rail and tram services which were included in their spectator tickets xiii. Not only did this minimise congestion during the two-week period, but it also demonstrated the effectiveness of a well-functioning transport network which can help reduce congestion and in turn, improve business productivity and reduce air pollution and associated ill health. The legacy of Birmingham 2022 will contribute to wider sustainability goals for the region while also making the West Midlands more attractive as an investment location, and thereby more likely to secure ‘big ticket’ events in the future.

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Section 4: Recommendations for Stakeholders

v. Communication is critical for maintaining positive sentiment and engagement on Games legacy

Our B2022 Commonwealth Games Business Barometer indicates that business sentiment on the impact of the Games on the city region, weakened in the months following the Games. In our poll undertaken immediately post-Games (AugustSeptember 2022) 90% of respondents identified that the Games had had a positive impact on the city-region to date. By our most recent poll (MayJune 2023) this had fallen to 80%. Several interview participants, while positive about the impact of the Games, highlighted wanting more clarity on postGames strategy and how businesses can engage.

Many interview participants highlighted the impressive level of partnership working seen between Games partners in delivering the Games. We recommend that regional stakeholders take a proactive approach to collaborating on consistent ongoing communication with the local business community on the impact of Games legacy on the city-region and how businesses can play a part of it. This includes both the social legacy aspects of the Games (for example, participation in the United by 22 Legacy Charity programmes) and economic impact (such as opportunities to supply future major sporting events in the region as part of the Birmingham Major Sporting Events Strategy).

vi. Maintain momentum by building on key programmes and lessons learned and embedding them in regional strategies

Our research indicates that businesses want to see the platform of the Games driving tourism, investment, business opportunities and positive outcomes for local people. Interview participants

highlighted the positive impact on the city-region’s reputation among both visitors and investors alike. The need for a clear tourism strategy was highlighted. They also highlighted the importance of and commitment to, social legacy.

The Games involved many innovative approaches to delivery including the Jobs and Skills Academy, Business and Tourism Programme, sustainable transport planning, social value centred contracting, arts and culture led activity and community programmes. We recommend that stakeholder show how they are learning from and building on these outcomes and models and embedding those learnings in regional strategies for the long term.

vii. Prioritise Local Business Engagement and harness their appetite for ensuring a positive economic and social legacy from the Games

Economic impact is central to the business case for hosting a major sporting event. Our research shows that the business community is positive about the local impact of the Games to date. Almost a third, 32%, of businesses participating in our latest poll reported that the Games had had a positive impact on their business to date. There are high levels of interest in ongoing engagement with Games legacy across social legacy, supporting arts and culture, attracting future major sporting events, developing trading opportunities with Commonwealth nations and engaging with local procurement opportunities.

Across every area of Games legacy, from economic to social impact, local businesses are critical. They are the wealth creators, employers, among key place makers and community anchors. Ensure local business engagement is central to ongoing Games legacy strategies and activity

We recommend that local stakeholders proactively harness this appetite from businesses to be part of Games legacy and utilise their expertise in order to maintain positive sentiment and further increase positive outcomes.

BIRMINGHAM 2022 COMMONWEALTH GAMES: WHAT NEXT? UNDERSTANDING THE LEGACY FOR LOCAL BUSINESSES 18

About the Greater Birmingham Chambers of Commerce

The Chamber are here to unleash the potential of Greater Birmingham’s businesses. We give them the tools to build their profile and networks, access opportunities and learn from best practice locally, as well as trade internationally.

We are a not for profit business membership and support organisation that exists to Connect. Support. Grow. local businesses.

We’re in it for the long haul – we’ve been putting the us in business, since 1813. Today’s Chamber has over 2,500 members, ranging from young professionals and start-ups to multinational corporations.

The Chamber is an unwavering voice and champion of local businesses, working in partnership with stakeholders across the region to make Greater Birmingham the best possible place to work and do business.

Our Insight & Intelligence Services team deliver high quality research into local business community trends and views. In addition to independent research such as this publication, we undertake a small number of commercial projects with partners each year to help fund our work on behalf of the local business community. To find out more, contact us using the details below.

r.kandola@birmingham-chamber.com www.greaterbirminghamchambers.com

Us
Kandola
of External Affairs, Greater
Chambers of Commerce
Contact
Raj
Director
Birmingham

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