The large law firm market slowed across several key metrics — including demand, rates and productivity — in the second quarter, according to the Thomson Reuters Peer Monitor Index (PMI) but US Am Law 100 firms bucked the trend. The PMI, produced by Thomson Reuters, is a composite index of law firm market performance using real-time data drawn from major law firms in the United States and key international markets. A PMI of 65 or greater indicates strong law firm market performance.The PMI, in the second quarter, fell three points to 50.
Growth demand
The research found that the Am Law 100 firms showed demand growth during the quarter, while demand fell for Am Law second hundred (101-200) and midsize firms (firms outside the largest 200). Am Law 100 also is the only market segment with positive demand growth through the first six months of the year. Demand for the large law firm market was down 0.1 per cent. Year-to-date, demand growth is nearly neutral, up barely 0.1 percent.
Mixed
The research found that business in transactional practices were mixed, corporate practices were flat despite continued growth in M&A activity and real estate declined. However, tax work was up during the quarter. Litigation work fell two per cent, but the decline was not across all segments. Am Law 100 firms saw flat demand for the quarter, and have grown litigation 0.2 per cent year-to-date. Meanwhile, the other market segments, Am Law second hundred and midsize, saw litigation decline both in the second quarter and year-to-date.
Improved strength
'While the overall market continues to struggle to find traction this year, we are seeing signs of improved strength across Big Law,' said Mike Abbott, vice president, client management and global thought leadership at Thomson Reuters. 'The market tier made up of the largest firms is showing more widespread stability and growth than their smaller counterparts. In recent years, while many of the largest firms have been able to hold their own or even grow, some large firms had seen portions of work shift to more down-market segments, often in search of more cost-effective options. We are now seeing a greater flow of ‘big ticket’ work such as litigation and M&A to the ranks of the largest national and global firms.' A copy of the Q2 2017 PMI report can be requested here.
Email your news and story ideas to: [email protected]
