Martyn Kendrick

Three fifths (60%) of Scottish businesses say they have been impacted by recent global uncertainty, with 65% citing rising costs and 33% citing supply chain disruption as the main consequences. Despite this, over half (51%) of firms said they still expect to grow this year. 

The Business Barometer survey is made up of 1,200 UK firms from across all regions and sectors. 

The latest research reveals that Scottish businesses are adapting, with 62% of firms actively adjusting their strategy in response to global uncertainty.  

Among those taking action, 49% have increased their inventory levels, 47% have introduced cost-saving measures and 36% have locked in commodity, raw material or input prices.  

Scottish businesses are using financial tools to help manage volatility and 60% of companies say they have the right financial tools and support to mitigate economic shocks.  

Of those with appropriate support, 47% are using cashflow forecasting, 24% are using working capital facilities or overdrafts and 12% are using interest rate hedging.  

Martyn Kendrick, regional director for Scotland at Bank of Scotland, said: “Scottish businesses are facing into a challenging and uncertain environment, but these findings show they are responding with confidence and resilience. Many firms are taking practical steps to manage rising costs and reduce exposure to volatility, while continuing to focus on growth opportunities. 

“It’s particularly encouraging to see so many businesses planning ahead and making use of tools such as cashflow forecasting to help them navigate uncertainty. While the pressures facing firms haven’t disappeared, Scottish businesses have a strong track record of adapting to change and finding ways to move forward.” 

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, added: “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.” 

 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.