West Midlands businesses show resilience to global uncertainty with majority targeting growth - report
West Midlands businesses are showing resilience in response to global uncertainty, with 67 per cent saying they are confident in their ability to withstand economic shocks, according to new findings from the Lloyds Business Barometer.
Nearly half (46 per cent) of West Midlands businesses say they have been impacted by recent global uncertainty, with 26 per cent citing rising costs and 28 per cent citing supply chain disruption as the main consequences.
Despite this, 54 per cent of firms said they still expect to grow this year.
The Lloyds Business Barometer survey is made up of 1,200 UK firms from across all regions and sectors.
The latest research reveals that West Midlands businesses are adapting, with half of firms (50 per cent) actively adjusting their strategy in response to global uncertainty.
Among those taking action, 56 per cent have introduced cost-saving measures, 28 per cent have increased their inventory levels and 47 per cent have locked in commodity, raw material or input prices.
West Midlands businesses are using financial tools to help manage volatility, with 76 per cent of companies saying they have the right financial tools and support to mitigate economic shocks.
Of those with appropriate support, 38 per cent use cashflow forecasting, 41 per cent use working capital facilities or overdrafts and 23 per cent use interest rate hedging.
Dave Atkinson (pictured), regional director for the West Midlands, said: “West Midlands firms have come into May with rising optimism both in their own trading prospects and in the wider economy.
“What stands out is the focus on growth, with nearly half of businesses looking to enter new markets, while many are also prioritising new technology and investing in skills through training. Those choices point to ambitious plans, and they’re backed up by expectations to grow headcount over the next year.
“As businesses look ahead to the next six months, we’ll continue to work closely with companies across the region to help them navigate costs and uncertainty, and to fund investment that supports productivity and long-term growth.”
Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “What we’re seeing from businesses is not just resilience, but decisive action in the face of ongoing uncertainty.
“Across sectors like manufacturing, logistics and food production, firms are taking practical steps to protect their operations – increasing inventory and locking in costs where they can.
“Many also recognise that global supply chain challenges and energy market volatility are structural issues, not temporary blips. In response, businesses are managing costs, securing supply and building greater resilience into their operating models.
“That puts greater focus on working capital and funding, but it also reflects a confidence. Firms are backing their ability to navigate uncertainty and continue to grow.”
On a national level, UK businesses are showing resilience in response to global uncertainty, with 84 per cent saying they are confident in their ability to withstand economic shocks.
More than half (57 per cent) of businesses say they have been impacted by recent global uncertainty, with rising costs (45 per cent) and supply chain disruption (37 per cent) cited most frequently as consequences. Despite this, a further 57 per cent of firms said they still expect to grow this year in spite of shifting market conditions, while 30 per cent expect trading levels to remain the same.
The latest research revealed that businesses are adapting in response to global uncertainty. It found that nearly six in 10 (59 per cent) firms are actively adjusting their strategy in response to worldwide events.
Among those taking action, more than half (51 per cent) have introduced cost-saving measures, while more than a third (35 per cent) have increased their inventory levels (35 per cent), with the same proportion (35 per cent) having locked in commodity, raw material or input prices.
