Data from the latest Lloyds Business Barometer shows West Midlands firms’ appetite to enter new export or import markets is marginally ahead of the national average (45 per cent) and just slightly more cautious than their counterparts in the East Midlands (51 per cent) and London (48 per cent).

No West Midlands firms that trade internationally expect to reduce their activity over the period. 

Alongside entering new markets, more than a third (34 per cent) intend to diversify away from their current trade partners and the same proportion plan to maintain their current trade activity without undertaking significant expansion.

Nearly three in ten (28 per cent) of West Midlands firms plan to expand their presence in the markets where they already operate. 

Of the West Midlands firms that trade internationally, 39 per cent say their activity has increased over the past 12 months, compared to just nine per cent reporting a decline.

This compares with 47 per cent of businesses nationally reporting an increase in international trade activity over the same period. 

More than two thirds of the region’s businesses (68 per cent) now trade internationally, either exporting or importing goods and services, the third highest of all regions or nations after London (73 per cent) and the North West (70 per cent). 

Just three per cent of internationally trading businesses say they face no significant barriers to increasing their activity. When asked which barriers most prevent them from trading more, firms pointed to a mix of external conditions and skills and training. 

The cost of international expansion emerged as the biggest barrier to expanding international trade among firms in the West Midlands, cited by more than four in ten businesses (44 per cent).

This was followed by a lack of internal skills or expertise in international trade (30 per cent) and regulatory or compliance complexity (28 per cent). 

More than eight in ten West Midlands firms (85 per cent) say affordable access to trade finance facilities would be important to their future international trade plans, marginally ahead of the national average of 84 per cent. 

While almost three quarters (74 per cent) of West Midlands businesses report some form of current access to trade finance facilities, just behind the national average (75 per cent), less than a quarter (23 per cent) describe that access as adequate and 51 per cent say it is available but limited or expensive. 

To help businesses manage the practical complexities of trading overseas, Lloyds has launched Export Assist, an AI-powered tool designed to automate and remove discrepancies that cost exporters an estimated 500,000 days each year through delays and the resubmission of documents.

The tool is available to all exporters, whether or not they bank with Lloyds. 

Graham Fitzgerald, regional director for the West Midlands at Lloyds, said: “The West Midlands has a proud history as a region of makers and traders, so it’s encouraging to see so many local businesses setting their sights on new international markets.

“Just as importantly, none are planning to scale back their international ambitions, which is a powerful vote of confidence in the region’s resilience and appetite for growth, despite ongoing global challenges.  

“Managing costs, navigating regulation and finding the right international partners are important considerations for firms in the West Midlands.

“Having access to the right expertise, practical guidance and tailored financial solutions will be key in helping businesses overcome these barriers and turn their international ambitions into long-term growth.”