The grim outlook in the latest quarterly Law Firm Financial Index report from Thomson Reuters released yesterday was such a downer I can’t even work up the energy to recap it. Here’s how my Law.com colleague Andrew Maloney summed it up:
Law firm leaders are likely to face mounting pressure to make cuts wherever they can find them as the end of the year approaches, with demand falling 0.7% relative to the same period last year and productivity falling 3.8%, according to a report published Monday.
Every practice area sans labor and employment, which saw a modest 0.4% gain, saw declining demand, according to the latest Law Firm Financial Index report from Thomson Reuters. And even “historically high” billing rate growth, pegged at 4.8% relative to the third quarter of 2021 across law firm segments, is being eclipsed by inflation.
All of that means Big Law is at an “inflection point,” the report concluded, with equity partners quite possibly getting smaller payouts and firms potentially under pressure to cut into head count.
So, in the face of that stark reality, how goes it in litigation?