UK corporates prioritising resilience as volatility rises, new Lloyds report shows - Trade Treasury Payments

• Home
• Blog
• Articles
• UK corporates prioritising resilience as volatility rises, new Lloyds report shows

UK corporates prioritising resilience as volatility rises, new Lloyds report shows

Lloyds Bank has released a new publication, Navigating a Volatile World, outlining how UK corporates are adjusting to ongoing macroeconomic uncertainty, shifting trade dynamics, and competing operational priorities.

The report captures insights from across Lloyds’ corporate and institutional banking teams. While challenges remain, the findings suggest UK corporates are opting for measured adaptability over reactive change.

In the wake of renewed global trade tensions, including prospective tariff actions from major trading partners, many UK firms are taking a wait-and-see approach, focusing on optionality and risk mitigation, rather than restructuring supply chains prematurely.

According to Lloyds, most businesses are resisting pressure to act quickly. While there is concern around policy volatility, there seems to be a stronger concern about misreading the cycle. Some have shifted manufacturing or increased stockholding as a buffer, but broad structural changes remain limited.

Treasury and finance functions are seeing renewed attention. As volatility puts pressure on working capital, corporates are accelerating investments in digital cash management, including things like API-based integration and real-time analytics.

In capital markets, Lloyds advises corporates to maintain flexibility. This includes securing internal approvals in advance and preparing for multiple outcomes, but not feeling compelled to move if market conditions deteriorate. Firms with optionality in funding strategy are better placed to navigate tightening or dislocation.

According to the report, there has been a shift in supply chain expectations, with 77% of manufacturers now facing ESG requirements from customers, and nearly as many imposing them on their own suppliers. 

Despite this change, approaches to ESG are evolving. Rather than viewing it as long-term and discretionary, many corporations are integrating ESG considerations into their day-to-day decision-making, particularly when it comes to areas like procurement and operations.