One of the great mysteries of the legal market today is why law firms are growing so slowly. Large corporations are awash with profits. Importantly, they also face many risks. Political volatility is high, global trade is becoming more complex, and operational risks like cyber-attacks and #MeToo disputes, seem to be increasing. So why aren’t law firms seeing an uptick in demand?

To answer this question, many legal market observers point to the “new”. The growth of in-house teams, the emergence of a new raft of non-law firm competitors, and the new, cost-conscious mentality of law departments. These forces have surely had an impact, but a more likely culprit lurks in the background – the broader macro-economic environment in which law firms exist.