The law firm market is showing encouraging signs of stabilizing. The Hildebrandt Peer Monitor Economic Index (PMI) rose two points to a reading of 46 in the third quarter of 2009.
While demand and pricing remain weak, there are increasing signs that demand for legal work is strengthening, particularly in litigation. We view that as an important measure because it represents, for many firms, a sizable portion of their workload.
Rate growth for worked hours, however, remains weak and revenues are basically flat year to date. Firms continue to have success in controlling expenses. Both direct and overhead expenses continue to drop, helping firms sustain profitability.
We expect firms will continue to be conservative in managing headcount even if the overall economy continues to improve as we enter 2010.
You can listen to a Westcast podcast discussion about the latest PMI data, with me and host Leonard Lee.
And a copy of the full third quarter PMI report can be downloaded here.
For more information about PMI, you can contact me via email at mark.medice@thomsonreuters.com.
Mark Medice
Program Director
Hildebrandt Peer Monitor
Posted by Mark Medice in:
In Business | Law firm business |
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The Hildebrandt Peer Monitor Economic Index (PMI) continues to show some tentative, but encouraging signs of activity in the law firm market.
The PMI rose four points to 44 in the second quarter, the first increase in the last three quarters. And early data from the third quarter suggests some segments of the market, such as litigation, may be stabilizing.
Demand and pricing, however, continue to be weak compared with a year earlier. Firms continue to aggressively cut costs in response to weak demand, reducing both headcount and overhead expenses.
Listen to a Westcast podcast discussion about the PMI data with me, Lisa Smith from Hildebrandt and host Leonard Lee.
A copy of the full second quarter Peer Monitor Index report can be downloaded here. And, for more information about PMI, you can contact me via email at mark.medice@thomsonreuters.com.
Mark Medice
Program Director
Hildebrandt Peer Monitor
Posted by Mark Medice in:
In Business | Law firm business |
No Comments |
Aggressive cost controls by law firms are offsetting continued weak demand and pricing, helping law firms maintain profitability.
As a result, the Hildebrandt Peer Monitor Economic Index (PMI) rose four points in the second quarter to a reading of 44.
Demand was weak, falling 7.2% from a year earlier. However, there were signs that demand may be beginning to stabilize. Rate growth continued to slow, up 3.2% in the second quarter.
Against the continuing economic headwinds, law firms are moving aggressively to reduce costs. Both direct and overhead expenses fell for the first time in four years. Direct expenses dropped 1.7% as a result of headcount reductions and changes in compensation structures. Overhead expenses likewise fell half a percent.
Bankruptcy continued to be the strongest practice area. Demand for litigation work was down. The same was true for transactional practice areas, although transactional work may strengthen as the overall economy continues to improve.
What’s your take on the latest PMI?
A copy of the full second quarter Peer Monitor Index report can be downloaded here. And, for more information about PMI, you can contact me via email at mark.medice@thomsonreuters.com.
Mark Medice
Program Director
Hildebrandt Peer Monitor
Posted by Mark Medice in:
In Business | Industry trends |
No Comments |
The Hildebrandt Peer Monitor Economic Index (PMI) fell slightly to a reading of 40 in Q1 2009, essentially flat to the previous quarter, a result of soft law firm demand and rate conditions, weighed against aggressive measures taken by firms to cut costs.
In the first quarter, law firm demand continued the sharp decline noted in the previous quarter. It remains to be seen whether some signs of relative strength late in the quarter represent a potential bottoming or merely a blip in the downward trend. Meanwhile, rates grew at the slowest rate in the last several years.
Hildebrandt Vice President Lisa Smith and I discuss the PMI report in this Westcast podcast (Runs 9:18).
In addition, Lisa and I will conduct a virtual seminar on June 15 to provide a mid-year PMI economic update and discuss actions that will help firms emerge from the downturn in a stronger competitive position. You can register here.
Mark Medice
Program Director
Hildebrandt Peer Monitor
Posted by Mark Medice in:
Audio | In Business | Law firm business |
No Comments |
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