Citi Private Bank’s Law Firm Group recently published a report regarding legal industry predictions for the second half of 2016. The report is based upon surveys taken from law firm chairs, managing partners, executive directors, COOs and CFOs at 72 AM Law 100 firms, 39 AM Law 200 firms and 44 smaller firms. In general, the report forecasts modest growth in the legal sector for the remainder of 2016.
The main predictions reported by Citi Private Bank include:
- Most law firm leaders expect demand for legal services to increase, but by less than five percent.
- Just eight percent of law firm executives predict that demand, as measured by billable hours, will increase by more than five percent. Twenty percent of those surveyed expect demand to decrease.
- Two-thirds of firm leaders expect to see a growth in associates in the near future. However, given the possibility that many firms will increase the salary for associates, it’s questionable whether this growth will actually occur.
- Realization rates, which measure the amount of money that firms collect from clients, are expected to remain sluggish.
- The majority of those surveyed predict net firm income to grow, but not as much as revenue. This suggests an overall increase in firm expenses.
- With regards to the overall U.S. economy, 44 percent of law firm executives expect the economy to improve, 34 percent expect it to remain the same, and 22 percent forecast economic decline.
The above predictions were recently summarized by the National Association of Legal Search Consultants. Please click here (page 5) to view this summary in its entirety. The synopsis was originally created by Nell Gluckman with The Am Law Daily.
We Remain Optimistic
Despite the label “moderate growth” or “modest growth,” LAW DAGS embraces the second half of 2016 will full confidence and optimism. We’ve been in the legal and corporate staffing industry for almost 30 years. Our recruitment specialists work tirelessly to assist both employers and candidates fill positions. These consultants continue to succeed in their efforts and remain confident in the overall health of the legal industry.
“Moderate” and “modest” are merely labels. We’re not about labels. Our company is about providing excellence and success to its employers and candidates; and, we’re always here to assist. Please contact us to learn more of our unrivaled placement services and employment opportunities.