London\'s successful bid for the 2012 Olympic Games could provide an £8.6billion boost to the construction industry, according to the latest national construction forecast by Experian.

And the Construction Products Association was delighted with the news that came on 6 July. Allan WilÈn, economics director, said: "Winning the Games is a tremendous boost to the Capital\'s economy and provides a heritage of improved sports and transport facilities."

The London bid had set out a £10billion programme for sports stadia, accommodation and infrastructure investment. Building work has, in fact, already started on two key venues - the £70million Aquatics Centre and the £30million Velopark. However, the majority of the work will not start to kick in until 2007.

Allan WilÈn said: "The Olympic Village itself will make use of an already planned £650million public-private regeneration scheme and will be converted from Olympic use to become a mixed-use community of 3,600 new apartments and town houses, which will deliver badly needed housing to the east of London.

"The new challenge for the Olympic bid team and the construction industry is to ensure the timely and cost effective delivery of the promised facilities."

According to Experian, construction output exceeded the £80billion mark in 2004 for the first time, but say a more subdued outlook is in prospect with public sector investment accounting for the lion\'s share of construction growth while the private sector struggles to move forward.

From 2007, however, they say the outlook is significantly more positive as private housing recovers and infrastructure output registers strong growth after declining substantially in 2003 and 2004, particularly as already-committed rail investment, a fundamental element in the success of London\'s Olympic bid, commences.

Work will focus on refurbishment of all London Underground stations, the east London extension to the Docklands Light Rail and the £1bn extension of the East London Line.

James Hastings, Associate Director of Experian\'s Business Strategies division, commented: "London\'s successful bid for the 2012 Games will certainly boost construction output in the UK, particularly infrastructure and non-residential sectors."

"To say the outlook for the industry towards the end of the decade has significantly improved as a result of the win is definitely justified."Construction projects valued at over £8bn are substantial in an industry that was worth just over £80bn in real terms in 2004. "Beyond 2012, the construction industry will gain from the demolition and reconstruction of key Olympic sites as they are moved to new locations around the country. Other benefits may follow in the wake of the Games. It is possible, for example, that the Games will act as a catalyst for the planned regeneration of east London.""