There are several interesting insights into big law firm business operations that will be useful to those of you heading to large firms (or considering interviewing with them in the fall).

• growth in demand for legal services up by a mere .5%
• the number of lawyers increased by 2% (which put growth in productivity, i.e., number of hours a firm bills divided by number of lawyers, in negative territory) 
• profits per partner grew modestly at 3.58% (partners at non-AmLaw 100 firms fared better than those from AmLaw 100)
• it was a banner year for global expansion of U.S. and international law firms (96 cross border law firm mergers took place)

The report analyzes some of the longer term trends behind these numbers.  It’s a must-read.

As for 2013, the authors of the report predict ”that most firms will continue to struggle to maintain profitability as the combined effects of slow demand growth, declining realization rates, and persistent overcapacity will continue to eat into profit margins. We do expect to see some growth in revenues and continued rigorous efforts to manage expenses, but overall we anticipate that there will be only modest growth in profits per equity partner in the current year – probably in the low single digit range.”

Urban Studies expert Joel Kotkin discusses a list of the metropolitan areas with the fastest growth rates for high-wage sectors in : The Cities Winning The Battle For The Fastest Growing High-Wage Sector In The U.S.  He notes Chicago’s absence from the top 10 as well as “the big metropolitan areas of the Northeast and California that have traditionally dominated high-end business services. The only exception is the third-ranked San Francisco-Oakland-Fremont metropolitan statistical area. . . . Yet the other leaders on our list are generally smaller, growing metro areas whose expansions have been propelled by a rapid increase in employment in technology and professional management services. These include our top-ranked metro area, Austin-Round Rock-San Marcos, Texas, which enjoyed over 46% growth in employment in professional services since 2001; fourth-place Raleigh-Durham, N.C.; and No. 5 Salt Lake City, Utah. These areas have enjoyed strong net-in migration of educated workers, and have poached companies from more expensive regions. More surprising still has been the rapid ascent of such unheralded regions as second-place Jacksonville, Fla., and Oklahoma City (sixth place).”

]]> http://careers.berkeleylawblogs.org/2013/02/11/geographic-regions-with-fastest-growing-professional-scientific-and-technical-services-sectors/feed/ 0 http://careers.berkeleylawblogs.org/2012/11/02/3rd-quarter-2012-update-on-the-large-law-firm-market/ http://careers.berkeleylawblogs.org/2012/11/02/3rd-quarter-2012-update-on-the-large-law-firm-market/#comments Fri, 02 Nov 2012 18:54:31 +0000 Terrence Galligan http://careers.berkeleylawblogs.org/?p=206 Those of you who follow our blog, know that we regularly share with you the results of law business consultant Hildebrandt’s quarterly reports on the state of the large law firm market.  Their report for the third quarter of 2012 (ending September 30th) is now out.

Like the last report (for Q 2), it’s not positive.

Key findings:

• overall demand for legal services dropped by 0.8%
• demand was down in every practice area with the exception of labor and employment, which was up by 2.5%
• IP litigation, which was a practice area that had performed relatively strongly in the recent past, was down by 3.6% in Q3.
• mid-sized firms performed relatively better than the largest firms
• demand in NY was up 4%, but down in LA, Silicon Valley, DC, and Chicago  
• attorney headcount continued to grow, but the growth rate slowed
• the attorney replenishment ratio remained at 1.3 (about where it’s been for the rest of 2012)
• productivity (the measure of the ratio between capacity and demand) fell 2.5% (the third consecutive quarterly decline)   

 Bottom line is that Hildebrandt finds no reason to alter the prediction contained in its Q2 report that the large firm legal market will continue its “sluggish, largely flat trajectory” [Hildebrandt's language] for the foreseeable future.

Check it out here.

Read the whole thing here. 

His conclusion:     ”Invest time understanding the intersection between law and technology. Read [author and legal futurist Richard] Susskind’s books.  Subscribe (via email or RSS feeds) to the many publications in the Law.com network, including the Law Technology News, and the ABA Daily Journal (most content is free).  Some terrific blog include Law21, Strategic Legal Technology, 3 Geeks and a Law Blog, or The Legal Whiteboard (my own blog).  Identify some of the new, innovative companies and ask for informational interviews—don’t be shy.  These companies will be flattered.  And remember the advice followed by countless successful people: ‘luck is when opportunity meets preparation.’”

The latest reports are not positive. 

Among the key findings:

• demand for legal services fell slightly (0.2%)
• law firms’ expenses are continuing to rise faster than their revenues; however the pace of the increase has slightly slowed in Q 2
• the growth in attorney headcount slowed slightly (the associate replenishment ratio went from 1.4 in Q 1 to 1.3 in Q 2
• productivity (a measure of the ratio between capacity and demand) fell 2.5% (productivity also fell in the previous 2 quarters)
• clients continue to exert pressure on pricing

The reports caution that hiring may slow as the year wears on, as firms realize that market demand does not currently justify adding additional capacity.  They predict that the large firm legal market will continue its “sluggish, largely flat trajectory” [Hildebrandt's language] for the foreseeable future.

We published the results of the Berkeley Law grad employment survey last Spring.  You can find them here.   

Here are some key comparisons.

Nationally, the employment rate for 2011 law grads was 85.6%.  Our 2011 grads had a 94.16% employment rate. 

Nationally, only 65.4% of those employed were in jobs requiring bar passage.  Here, the figure was 92.07% (An additional 4.14% of 2011 employed Boalt grads are in “JD preferred” positions).

Nationally, 49.5% of employed graduates obtained a job in private practice.  53.1% of our employed 2011 grads immediately entered private practice (another 12.76% of our grads went off to clerk for a judge immediately after graduation).

Only 16.2% of private practice jobs nationally were with large law firms (+500 attorneys).   In contrast, 59.74% of private practice jobs accepted by our 2011 grads were in firms of 501 or more attorneys. 

Conversely, jobs at firms of 50 or fewer lawyers accounted for 59% of all private practice jobs nationally whereas that figure was 15% at Boalt.  

Public interest organizations, including public defenders, accounted for 7.5% of post-law school grad jobs nationally.  15.52% of our grads went to work for public interest organizations in 2011.

Your attire should contribute to your professionalism.  Although employers may have different dress codes, err on the conservative side when interviewing.

Women

• Skirt suits are still considered the most conservative, although women wear pants suits as well.
• Black, navy and gray are the most conservative colors, but tans and other subtle shades are also acceptable.  Solids are preferable to patterns.
• The skirt should be no more than two inches above the knee.
• Wear a white or cream blouse (sometimes called a “shell”) with either short or long sleeves. Tank tops and camisoles are too casual. The blouse should either have a collar or a round neck. Avoid low-cut shirts.
• Wear a white or cream blouse (sometimes called a “shell”) with either short or long sleeves. Tank tops and camisoles are too casual. The blouse should either have a collar or a round neck. Avoid low-cut shirts.

• Shoes should be simple pumps in a dark color with a medium-sized (1-1/2″to 2″) heel. Stay away from high heels, ankle boots, elaborate bows, buckles etc.
• Pantyhose should not have any runs or snags and should be a neutral tone. Keep away from snazzy designs and textures.
• Simple earrings, necklace, bracelet, and basic watch are appropriate. Don’t wear hoop or dangling earrings, nose rings, or multiple rings or bracelets.
• Long hair/curly hair does not have to be pulled back unless it will be in your face or distract you, then pull it up.
• Go easy on the makeup and use a light hand in applying perfume. Don’t forget your deodorant.
• Nails should not be too long and if polished, should be in a neutral shade.
• Carry a briefcase or folder that contains your interview materials. If you carry a briefcase, don’t carry a purse.

Men

• Suit should be a well-tailored pin-striped or plain wool single-breasted suit in navy or gray.
• The pant cuff should fall lightly over your shoes-no “high waters” that show off your socks.
• Select a tasteful tie made of silk. Do not wear large prints, cartoon characters or anything else that is flashy or vulgar. The width of your tie should be between 2-3/4″ and 3-1/2″ and should extend to your trouser belt. Don’t wear a bow tie.
• Wear a plain, light-colored long-sleeved shirt. White or light blue are acceptable. Shirt should not have french cuffs.
• Shoes should be polished with socks that complement the suit. Shoes should match your belt.
• For jewelry, don’t wear anything more than a simple watch and wedding band. Leave your earring/nose ring at home.
• Hair should be neatly cut and professionally styled. Although it is not recommended, if you have long hair, pull it back into a neat ponytail. Beards and mustaches should be trimmed.
• Use a good deodorant and go light on any cologne or aftershave.
• Carry a briefcase or folder that contains your interview materials.