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.

• 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.

• 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.

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