Birmingham 2022 made history and not only due to the amazing feats of its athletes. The event is on track to be one of the most successful Commonwealth Games ever, with over 1.5 million tickets sold.
However, it's vital the West Midlands doesn't rest on its laurels but that we seize this opportunity to leave a lasting economic legacy for our region. During the games, Birmingham and the wider West Midlands shone on a global stage during a spectacular 11-day festival of sport.
In addition to unprecedented ticket sales and Birmingham's hotels seeing upwards of 85 per cent occupancy, it was impossible to ignore the buzz as people celebrated the region's melting pot of cultures, communities and soaked up the atmosphere after the challenges of the last two years.
This included the six-month long Birmingham 2022 Festival - the region's biggest ever celebration of creativity and diversity. However, despite the joy and excitement the games has brought us, it's important to emphasise that many businesses are in a financial crisis and urgent action is needed to reboot our economy.
Three global economic shocks have created an impending cost of living crisis for those most in need in society. In addition to the supply chain and labour force impacts of the pandemic, the cost base of many companies is still being impacted by inflationary pressures resulting from the war in Ukraine and ongoing Brexit-related challenges.
While it's my belief the West Midlands is home to some of the most successful, innovative and resilient businesses in the world, they aren't immune to these problems. As a result, and in order to leave a lasting legacy following the games, it's never been more important to showcase our sector strengths and cement our reputation as a truly global region.
Birmingham 2022 represents a valuable opportunity to build on the West Midlands' existing economic ties with Commonwealth markets, such as India, Singapore, Malaysia, Australia and Canada and develop new opportunities in Africa and beyond. At the same time as the athletes put on a spectacle at our region's sporting venues, UK House - an eight-day programme of trade and investment talks - shone a spotlight on the West Midlands' world-class business credentials.
Jointly delivered by the West Midlands Growth Company and the Department for International Trade, this festival of business was attended by an impressive 1,541 people, from all corners of the globe. Around 300 speakers shared their expert insights, from government ministers, to international business leaders and former Commonwealth Games champions.
However, in order to optimise the economic impact of the games, it will be important for our region to secure a greater slice of the UK's foreign direct investment (FDI). This can prove transformational for local economies, helping to create a more competitive business environment, assisting talent agglomeration and contributing to international trade integration.
In the West Midlands, 5,571 new jobs were created from 143 FDI projects in 2021/22 - representing nine per cent of the UK's total FDI projects. For example, professional services firm Accenture recently announced a new Midlands hub as part of its regional expansion while Indian business service provider Firstsource announced the creation of 200 jobs at its new Birmingham headquarters.
Additionally, a wave of recent Commonwealth-sourced investment projects is evidence that the Business and Tourism Programme - the first programme of its kind, designed to boost the economic impact of the Commonwealth Games - is already bearing fruit. Despite this, the allocation of jobs and investment remains overly concentrated in London.
In the two decades to 2016, the number of foreign investments made in the capital more than tripled while the number of projects in the rest of the UK fell by 15 per cent. There is no reason why this should be the case and, to maximise the economic impact of the games and support the levelling up agenda, it will be vital to even out the UK's FDI playing field.
Acting on the recommendations made in last year's ‘Onward Report - Levelling Up Inward Investment', moving to a more devolved investment model that matches opportunities with regional needs, would help to address imbalances and enable the West Midlands to leverage the transformational effects of FDI.
Another important element of Birmingham 2022's legacy is carefully considering how to make the most of the facilities and experience to bid for other major international events. The news that Birmingham has been shortlisted to host next year's Eurovision Song Contest is a significant stamp of approval for the city, strengthening our reputation as a truly international events destination.
There's no doubt the games played a key role in the achievement, successfully demonstrating our region's friendliness, expertise and flexibility in welcoming large and complex events. Similarly, Birmingham's bid to be the new home of Great British Railways is driven by a commitment to leverage the profile of the games to bring more jobs, decision making and investment to the city.
The 2022 Commonwealth Games served as the ultimate shop window for the West Midlands, demonstrating our outstanding sporting, cultural and business credentials to the world. By taking steps to address FDI imbalances, reusing our outstanding facilities and keeping up momentum from the games to attract more major events, we can ensure the eyes of the world remain firmly on our region as we create a lasting legacy from Birmingham 2022.
Neil Rami is chief executive of inward investment agency West Midlands Growth Company
