Business leaders in the region have hit out at the organisers of London 2012 after it was revealed that the vast majority of merchandise would be manufactured abroad.
IoD chairman John Rider said it was outrageous that the region’s manufacturers had been overlooked for the lucrative work.
Games organisers hope to raise £1 billion from the sale of 2012 merchandise.
A report claimed that of the 446 items for sale on the site, 67 per cent are made in China and 18 per cent in Turkey. Only eight per cent are made in the UK.
The London Organising Committee has pointed out that the majority of companies licensed to manufacture 2012 souvenirs are UK-registered, but John Rider dismissed that as a smokescreen.
“These UK registrations are meaningless if the actual work is being done overseas.
“It’s particularly galling to discover that the contract for 2012 lapel badges has been awarded to a Chinese company when we have badge makers here in Birmingham ready, willing and able to do the work.
“Companies like Vaughtons, Fattorini and Toye, Kenning & Spencer are world leaders and deserve to have their skills showcased.”
Vaughtons, which made the medals for the 1948 London Games, was hoping to be considered for the contract to make the 2012 lapel badges, traditionally a best-seller at the Games.
That contract went instead to the Chinese company that manufactured the badges for the Beijing Games.
Mr Rider added: “I really think the 2012 organisers should have shown some sensitivity when awarding these contracts.
“It’s hard to imagine that other Olympic host nations would be quite so accommodating to their international rivals when handing out valuable work like this.
“Not all the 2012 contracts have been awarded, so I hope the organisers take note of the outcry these revelations are causing and make sure they deal with genuinely British companies with genuine British workforces.”