Bleak prospects for West Midlands law firms
Legal firms in the West Midlands expect to see little or no growth this year. Results from the Law Society’s law management section financial benchmarking Survey reveal that local law firms are reviewing their workforce and changing their business model. The study revealed that, nationally, net profit per equity partner was down by 24 per cent in 2009 compared to 2008. This corresponded with an approximated 9 per cent reduction in headcount. Ken Garvie, senior manager, specialist markets for Lloyds TSB Commercial in the West Midlands - which sponsored the survey - said: “Turbulent economic conditions and the regulatory and competitive changes contained in the Legal Services Act have combined to redefine the legal landscape. In response to these challenging economic conditions and an evolving regulatory environment many firms have adopted slimmer business models, paving the way for a return to better fortunes in the current year.” The survey also revealed that pay increases were rare and that short-term working was adopted by many firms. Garvie added: “If they haven’t already, solicitors should be taking the opportunity to review their business plans. Benchmarking exercises like this can be a useful sense-check and help firms to understand how their own financial performance ranks among their peers.”
