Hildebrandt Baker Robbins and the Law Firm Group at Citi Private Bank just released their 2010 Client Advisory for the legal industry. It describes the economic and related impacts of the past year on law firms across the U.S. market and offers some projections.
So what is their crystal ball telling them?
2010 will be a year of gradual growth, with revenues remaining at or slightly above 2009 levels. Dan DiPietro, advisory head of Citi’s Law Firm Group, says he believes the worst of the impact of the economic downturn is over.
“However, while the profession is no longer in crisis mode, we recognize that firms will remain under intense pressure to create new models for pricing and delivery of legal services,” DiPietro said in a news release. “The report addresses these issues as well as the industry’s response to the current market environment.”
James W. Jones, co-managing director of Hildebrandt Baker Robbins, predicts a buyer’s market for legal services for the foreseeable future. And that “this will fundamentally change the way firms approach the practice of law,” said Jones. “The watchwords of the day are efficiency and cost effectiveness. We are already seeing evidence of new ideas for pricing and the increased use of technology to streamline business processes in order to gain competitive advantage.”
The 2010 Client Advisory closes with some thoughts on how law firms can best approach the months ahead:
The fact that law firms suffered less than virtually any other industry sector is a tribute to the resiliency of the legal industry but also raises a potential concern. Those firms that become complacent and believe that we will inevitably return to ‘business as usual’ as the economy recovers will fail to see that the industry faces a deeper set of issues…
As we begin to come out of the current downturn, it will be more important than ever for law firm leaders to remain strategically focused and to understand the fundamental changes that are impacting the industry.
The 2010 Client Advisory draws from data presented in the Full Year 2009 Flash Report, an analysis of 193 U.S.-headquartered law firms by Citi Private Bank, and from the Peer Monitor survey of over 100 U.S.-based law firms. Peer Monitor is a unit of Hildebrandt Baker Robbins, part of Thomson Reuters.
To download a complete copy of the 2010 Client Advisory, click here.
Posted by Kevin Hunt in:
In Business | Law firm business |
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