In the intervening years, the budget for the Games has climbed exponentially and now stands at £12bn, more than five times the original estimate, and set to rise further.

Now, a mere 175 days from the start of the Games, many print businesses will be anticipating a steady increase in sales activity, not only catalysed by the event, but from the much-vaunted legacy the Games is expected to leave once the closing ceremony concludes on 12 August.

However, new figures released by the Federation of Small Businesses (FSB) paint a less optimistic picture. According to a survey of FSB members, 60% of small firms do not believe the London 2012 Games will have a positive impact on the long-term prospects for their business.

FSB national chairman John Walker says it is "worrying" that small businesses fear the worst (see Opinion, opposite).

"We know times are tough, but 2012 is a year of big events that small firms should benefit from," he says. "The government and Olympic authorities must help show small businesses how to reap the rewards from one of the biggest sporting and tourism events we’ve seen for years."

According to 4DM sales and marketing director Lance Hill, a lasting impact on business looks unlikely. "While I am a huge advocate of Britain hosting the Olympics as it is a great boost for London in particular, I’m not convinced it will have a lasting positive economic impact country-wide," says Hill. "Yes, many businesses will benefit, which is great, but the wider picture – particularly in print – will be less prolific."

Hill adds that the Games’ impact on business has been small, despite the firm taking a proactive approach to gaining sales through registering as a supplier two years ago.

But while most printers’ perceptions of the Olympics are coloured by whether or not they are a primary or secondary supplier – with many firms reporting having completed lengthy tender processes to no avail – the major boost will most likely come from linked promotions, rather than the organising body itself.

Regional impact
McKenzie Clark commercial director Ben Moss believes the whole sector will see a massive boost from April onwards, with a huge increase in projects from around the country, regardless of whether they are for Olympic venues. "That’s nothing to do with LOCOG," he adds. "I’m talking about sponsors, non-sponsors, associated companies – there will be a massive influx of work.

"There will be sponsors coming to town regionally. Birmingham hasn’t got an Olympic venue, but it has the US and Jamaican sprint teams staying at the university, so it will still be branded like a venue. Then you’ve got the team sponsors like Puma and Nike who will want their stuff all over the place – it feeds down to our industry."

Waltham Cross-based MPD (part of Delta Group) managing director Simon Summers agrees, saying the Games’ impact on the fulfilment and logistics business has been positive.

"It has had a positive effect through our clients tapping into the sales opportunities it gives them and allocating additional budgets to market this. Our clients also have some direct involvement with the Olympics," he adds. Despite this, Summers says he only expects the legacy to impact business at MPD in the short-to-medium term.

Summer’s caveat is echoed by Penge-based Odessa Print group managing director Bob Charles, who hopes sales activity will gather force in the coming months, but is uncertain about long-term impact.

"I’d love to think there would be an ongoing investment in advertising once the torch is extinguished, and I hope the Paralympics will be supported and maybe events held within the venues thereafter, but I don’t see much to come beyond that," he says.

Another concern is that the boost in print spend up to the games will be mirrored by a corresponding lull after the closing ceremony.

BPIF public affairs adviser Andrew Brown therefore suggests that UK printers should adopt a more cautious approach.

"I think the London Olympics and the Euro 2012 football tournament may provide a boost to print over the summer months, especially if advertising spend increases, but this could come at the expense of the other parts of the year," says Brown. "I don’t have a feel for how significant any legacy effect might be, and to what extent this would benefit print."

McKenzie Clark’s Moss adds that he thinks most printers are under-prepared for both the deluge of work and its aftermath: "It’s like when you have an earthquake out at sea – the water comes rushing in over land and then all gets sucked back out again. That’s what will happen to the sector.

"There’s going to be a massive influx of money and spend and then it will be sucked out as quick as it came, and we’ll be back to reality. I don’t think many firms are thinking about how they’re going to cope with a massive increase in business followed by a really big downturn."

However, Tim Lance, sales director at Slough-based print, design and fulfilment business X1, is more positive on the long-term impact of the Games. "We’re using the Olympic year as part of our marketing. It’s the feel-good factor, a time to be proud – coinciding with the Jubilee year of the Queen," he adds.

Lance says those pre-empting a lacklustre legacy should adopt a more positive approach going forward in 2012. "There are people who are half-full and those who are half-empty – they’re the half-empty brigade."

So with fewer than 200 days until the culmination of seven years’ hard work comes to fruition, there is still work out there, but a pro-active approach is needed to take a piece of the proverbial pie. As for the legacy naysayers – in this case, time will tell.

READER REACTION

Do you think that print will benefit long-term from the Games?

Tim Hill
Managing director, Speedscreen
"We have gained a few Olympic-related jobs, but nothing yet to set the world alight. Whether it has a major impact or not is still unknown – if we are a chosen partner it could be, I suppose. However, concerning the legacy, I can’t see a positive impact. I can foresee further contraction on spending. Some firms will spend budgets early; there will be one hell of a hangover and an anti-climax. Personally, I do not see any lasting effect on business. If anything, the after-effects could well be of a negative nature."

Ben Moss
Commercial director, McKenzie Clark
"There will be legacy projects afterwards [at the venues], but some of the firms that become busy this year – out of the doldrums of the recession – could use their profitability to create infrastructure to help them go forward. Prices have gone down since 2000 and there will be an opportunity for margins to be made over the summer months. This will in some way help companies survive, because 2013 is not going to be a classic year. It will be like 1999, when the lead up to the millennium was extremely busy; followed by 2000, which wasn’t."

Alan Padbury
Managing director, Westdale Press
"Here at Westdale Press, we have yet to gain any business as a result of the Olympics. Our company, therefore, has not been greatly impacted by the Games. To date, we have not gone after Olympic business as such and, to be honest, I would say that it’s unlikely the Games will leave much of a legacy for print. I actually feel guilty in saying that I think it will be a bit of a non-event for the printing community, because somehow it ought to feel like a good thing, but I just don’t believe it will amount to very much for us."

You can read Federation of Small Businesses national chairman John Walker's comment here