25/10/2010
Businesses are being advised to consider the impact of the Olympics more seriously, as it was revealed that the majority of businesses don't think it will affect them much.
A new report from Deloitte found that over two-thirds of UK companies don't think there will be an increase in demand for their services during the 2012 Games. Furthermore, over half of businesses in London this they Olympics will have "virtually no impact" on them.
"Many of these businesses need a wake-up call," explained Rick Cudworth, head of business continuity and resilience at Deloitte. "They operate in service industries where people are vital, where the supply chain time is critical, where having products on the shelf or food to serve in restaurants is essential to their daily business."
This was echoed by the London 2012 partner at Deloitte, Heath Hancock. She explained there is a "disconnect in that many businesses are expecting to see an increase in demand for their services but are not planning or thinking about what they need to do in order to secure that extra bit of business.''
Mr Cudworth added: "Thinking through the impacts than an Olympic-scale event could have on logistics, the supply of goods and the movement of staff is essential."
Nigel Bourne, the CBI's London director, believes that the Olympics will have a massive impact on the economy and thinks that businesses should be more aware of the business benefits that the Games will bring.
It's important news for suppliers, who will need to show that they can deliver an increased number of supplies over the busy period. It will undoubtedly require investments to achieve this, but through the use of invoice finance a business can generate the cash needed for such investments without eating into too much capital.
Laura Nineham