Nearly seven in ten Welsh businesses are confident in their ability to withstand economic shocks, according to new data from Lloyds Bank's business barometer. The survey found that 68% of firms in Wales feel prepared for economic turbulence, even as 71% report being affected by recent global uncertainty.
Rising Costs and Supply Chain Woes
The research highlights the primary challenges facing Welsh companies: 62% cite rising costs as a major consequence of global instability, while 44% point to supply chain disruption. Despite these headwinds, 48% of businesses still expect to grow this year, indicating underlying optimism.
Strategic Adaptations
In response to the uncertain environment, 51% of Welsh firms are actively adjusting their strategies. 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 to hedge against volatility.
Financial tools are also playing a key role: 66% of companies say they have the right financial tools and support to mitigate economic shocks. Of those, 39% use cashflow forecasting, 32% rely on working capital facilities or overdrafts, and 31% use invoice or supply chain financing.
UK-Wide Confidence Higher
For the UK as a whole, confidence is even stronger, with 84% of businesses expressing confidence in their ability to withstand economic shocks.
Expert Commentary
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.”
He added: “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, chief executive 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.”
Murphy continued: “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.”
