Welsh businesses are showing resilience in response to global uncertainty, with 68% saying they are confident in their ability to withstand economic shocks, according to new findings from the Lloyds Business Barometer.
More two thirds (71%) of Welsh businesses say they have been impacted by recent global uncertainty, with 62% citing rising costs and 44% citing supply chain disruption as the main consequences. Despite this, 48% 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 Welsh businesses are adapting, with 51% of firms actively adjusting their strategy in response to global uncertainty.
Among those taking action, 66% have introduced cost-saving measures, 49% have delayed or reduced expansion plans and 44% have locked in commodity, raw material or input prices.
Welsh businesses are using financial tools to help manage volatility, with 66% of companies saying they have the right financial tools and support to mitigate economic shocks.
Of those with appropriate support, 39% use cashflow forecasting, 32% use working capital facilities or overdrafts and 31% use invoice or supply chain financing.
Nathan Morgan, Area Director for Wales at Lloyds, said: “Welsh businesses continue to show real resilience in the face of global uncertainty. While rising costs and supply chain disruption are clearly having an impact, it’s encouraging to see firms taking proactive steps to protect their operations, manage volatility and keep their growth ambitions on track.
“By introducing measures such as cost saving, fixing prices and using tools like cashflow forecasting, businesses are putting themselves in a stronger position to navigate the months ahead. The challenges are clear, but these findings show that many Welsh firms remain confident, adaptable and ready to capitalise on opportunities as they emerge.”
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.”
The national picture
On a national level, UK businesses are showing resilience in response to global uncertainty, with 84% saying they are confident in their ability to withstand economic shocks.
More than half (57%) of businesses say they have been impacted by recent global uncertainty, with rising costs (45%) and supply chain disruption (37%) cited most frequently as consequences. Despite this, a further 57% of firms said they still expect to grow this year in spite of shifting market conditions, while 30% 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%) firms are actively adjusting their strategy in response to worldwide events.
Among those taking action, more than half (51%) have introduced cost-saving measures, while more than a third (35%) have increased their inventory levels (35%), with the same proportion (35%) having locked in commodity, raw material or input prices.
