North West businesses are showing resilience in response to global uncertainty, with 73% saying they are confident in their ability to withstand economic shocks, according to new findings from the Lloyds Business Barometer.
Two thirds (66%) of North West businesses say they have been impacted by recent global uncertainty, with 55% citing rising costs and 37% citing supply chain disruption as the main consequences. Despite this, 62% 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 North West businesses are adapting, with 75% of firms actively adjusting their strategy in response to global uncertainty.
Among those taking action, 52% have introduced cost-saving measures, 33% have delayed or reduced their plans for investment and expansion and 29% have hedged against or used tools to manage currency risk.
North West businesses are using financial tools to help manage volatility, with 75% of companies saying they have the right financial tools and support to mitigate economic shocks.
Of those with appropriate support, 50% use cashflow forecasting, 35% use digital banking tools like automated payments and 33% use trade finance.
Chris Whittle, Area Director in the North West at Lloyds, said: “Business in the North West are being proactive in the face of wider pressures and this is allowing many of our firms to still feel confident about achieving growth throughout the year. It’s testament to the innovation and resilience that they continue to display and that provides a strong foundation for our regional prosperity.
“These findings also demonstrate the importance of our businesses being empowered with the right financial tools to help them thrive. Whether that’s cashflow forecasting or digital banking tools, we’ll be there to support firms as they look to navigate these uncertain times.”
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.
