Industry Analysis & Industry Trends
The global financial crisis delivered a substantial hit to the Legal Activities industry, with revenue declining by 1.9% in 2008-09 and then a further 5.4% in 2009-10. Ever since, recovery has been slow as debt woes in Europe and tighter capital restrictions constrain banking liquidity and consequently dampen economic activity. Worst affected have been the top-tier firms, which earn the bulk of their revenue from major corporate clients. Although initial activity resulting from the collapse held up revenue over 2009, a decline in corporate transactions and merger and acquisition activity caused revenue and profits for the large firms to fall in 2009-10... purchase to read more
Industry Report - Industry Investment Chapter
The Legal Activities industry has a low level of capital intensity, as firms largely draw upon the skills and knowledge of law professionals to provide legal services. These skills come at a price, giving the industry a high average wage. For every £1 invested in capital, about £18.40 is spent on labour. Fee-earning lawyers at the large law firms tend to rely upon a high number of support staff to complete their work. This adds to wage costs for firms, and amid weaker conditions over the past two years, some firms have sought to cut this expenses by relocating support functions out of London.
Most law firms choose to lease their premises and office equipment, thereby avoiding the cost of land and equipment purchases... purchase to read more