67% of West Midlands businesses say they are resilient to global economic shocks.

50% have adjusted their business strategy to mitigate volatility, with cost saving, increasing inventory and fixing prices the most popular steps.

54% of West Midlands firms expect to grow this year.

76% of companies say they have the right financial tools to manage economic shocks.

West Midlands businesses are showing resilience in response to global uncertainty, with 67% saying they are confident in their ability to withstand economic shocks, according to new findings from the Lloyds Business Barometer.

Nearly half (46%) of West Midlands businesses say they have been impacted by recent global uncertainty, with 26% citing rising costs and 28% citing supply chain disruption as the main consequences. Despite this, 54% 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%) actively adjusting their strategy in response to global uncertainty.

Among those taking action, 56% have introduced cost-saving measures, 28% have increased their inventory levels and 47% have locked in commodity, raw material or input prices.

West Midlands businesses are using financial tools to help manage volatility, with 76% of companies saying they have the right financial tools and support to mitigate economic shocks.

Of those with appropriate support, 38% use cashflow forecasting, 41% use working capital facilities or overdrafts and 23% use interest rate hedging.

Dave Atkinson, 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.”

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.