This annual report does a great job highlighting significant trends that are reshaping the market for legal services, including observations that future success is unlikely to be achieved by traditional strategies and approaches. Here are a few of the report’s highlights:
- Overall, US law firms have experienced sluggish demand growth since the Great Recession. In fact, the overall demand for legal services has remained flat since 2010.
- Despite a flat market, the AmLaw 100 firms have seen slightly improved growth. On the other hand, the AmLaw 100-200 firms have seen a noticeable decline. MidLaw is holding steady.
- Demand growth was slightly positive in corporate, tax and IP litigation, but was negative in all other practice areas.
- Productivity (measured in terms of billable hours worked) for all categories of time-keepers continues to trickle downward, most notable among the “Of Counsel” ranks.
- Although it appears that law firms are “holding their own” since 2008, the market is not as healthy as it may appear on the surface. A deeper look suggests that there are a variety of issues in play that should concern firm leaders, especially the future impacts “alternative legal service providers,” such as accounting firms and legal staffing services.
- Law firms that proactively implement changes in the way they deliver legal services will emerge as the big winners, while those that do not will remain static at best.
- Dynamic and growing law firms invest considerably more in marketing/business development and technology than static firms.
Times are changing. Is your firm keeping pace?