Olympic win set to boost UK construction

LONDON’s recent Olympic win could boost UK construction by more than £8.6 billion, according to the latest national construction forecast by Experian, the global information solutions and economic forecasting group.

James Hastings, associate director of Experian's Business Strategies division, said: ‘London's successful bid for the 2012 Games will certainly boost construction output in the UK, particularly infrastructure and non-residential sectors.’

The largest section of Olympic investment, some £6.3 billion, will be focused on improving London's transport infrastructure. While some initial activity is already under way, the bulk of this work is expected to commence in 2007 and beyond. The remaining £2.3 billion will be invested in Games-specific capital, such as the Olympic Village and numerous sports venues.

‘While we do not expect this work to peak until at least 2009–10, initial work could start as early as 2007,’ said Mr Hastings, although he added that providing an accurate estimate of when Olympic-specific construction would have the biggest impact on the industry was difficult predict at this early stage.

‘It is quite possible that the scale and complexity of the projects involved, coupled with unrealistic expectations regarding timescales, could result in Olympic construction peaking much later in 2011,’ he commented.

Nevertheless, Mr Hastings said the outlook for the industry towards the end of the decade had significantly improved as a result of the win, and that beyond 2012 the construction industry would also gain from the demolition and reconstruction of key Olympic sites as they were moved to new locations around the country. And he added that the Games might also act as a catalyst for the planned regeneration of east London.