| |
2009/2010 Trends and Implications
By Marcus
Ollig
As we wrap up 2009 and dive into 2010, I wanted to share the history and trends we’re seeing that we hope bode well for the year. The information below is gleaned from the usual sources in the legal profession press, from our own internal trending over the past few years and from you, our clients and friends. First of all, thank you for continuing to trust us with your most important searches. We appreciate your trust and your business. I also want to thank you for always being so generous in sharing your insights and knowledge.
In both the recruiting and legal professions, 2009 was a difficult year with different, often competing pressures facing corporate legal departments and law firms. Corporate legal departments seemed to have more demands than ever – demands they were being asked to fulfill with fewer resources. Law firms saw their corporate and real estate work dry up and many did not see the usual corresponding uptick in litigation. Overall legal employment was down 5.8%, shedding almost 41,000 jobs over the past 12 months according to the U.S. Department of Labor Statistics. It seemed like there was a daily barrage of negative headlines – more lay-offs, summer associate hiring programs eliminated or reduced and the deferral of incoming associates (sometimes indefinitely). Beyond the headlines there were quiet cuts of staff and associates. Service partners were no longer valued in the same way. Many were asked to leave. Bah.
Hum. Bug.
So where is the silver lining? Search and staffing firms are often considered an informal leading indicator of hiring trends. As friends, you know we’re a relatively small search firm with a laser focus on the legal profession. We thought our reach was too narrow to be the type of bellwether that a large, multidisciplined general services staffing company would be. Yet we seemed to run ahead of the trends. After a stellar start in 2007, we were down late in the year right in advance of what we later learned was the start of this recession. By the second half of 2009 our business started to make significant gains led by our exploding lateral partner practice (definitely a trend) and, late in the year, by a significant increase in the momentum of contract attorney and lateral associate placements. Generally, decreases in contract employment lead into recession and increases in temporary or contract employment lead out of recession. We hope that is true this time.
Other positive trends: According to The Kiplinger Letter and other sources, the Federal Stimulus is priming the economic pump and starting to create jobs, which should increase in the second half of 2010. Inventories need replenishing, exports are up and interest rates remain low. Even the commercial real estate slide could mean positive things for lawyers as the 35% slide in values over the past two years starts to create demand from investors here and abroad (see below). We share the view that this will be a slow recovery, meaning traditionally counter cyclical practices like bankruptcy and, to some extent, even litigation will continue to grow as other activity picks up. So, 2010 here we come!
As the economy continues to improve, are you ready or are you still in recession mode?
Listening to our clients and based on conversations with law firm leaders, we have some observations, predictions and lessons to share for 2010.
PREDICTIONS:
- This year will be better than 2009. Overall, our clients report more work with even corporate practices seeing signs of life while litigation is picking up substantially. Several surveys I have read point to the same uptick in litigation in 2010 vs. 2009. Real estate will take more time to recover, but even some practitioners in this realm are seeing the signs of a comeback. Additionally, there are practices that thrive in a downturn, including bankruptcy that should continue to have momentum in the early stages of this recovery.
- A lot of money remains on the sidelines, but some capital is returning to the game. Eager investors are waiting for the bottom in the real estate market (especially commercial real estate) and there are others who will be looking to buy or invest in growing companies. Not just U.S. investors and private equity firms will be looking to invest in U.S. companies and commercial real estate. China and Canada will invest a lot of capital. China due to its amazing growth over the past 10 years, has literally several trillion dollars to invest. The United States will be one beneficiary of this investment. The strong Canadian dollar has investors there looking south.
- Work will continue to shift to midsized firms and firms in the middle of the country. Legal work can be done anywhere. Lower cost structures and high quality practices allow these firms to pick off work from cash-strapped companies.
To read more predictions and the implications for your firm click here for the full article.
|
|
|
|
 |
 |
 |
| |
Overall legal employment was down 5.8%, shedding almost 41,000 jobs over the past 12 months according to the U.S. Department of Labor Statistics.
|
|
|
 |
|
| |
“They don't take the shotgun approach.....rather they really took the time to learn our business and understand our needs.”
Managing Partner
“The Advocates have shown great flexibility in tailoring their searches to our needs, and they are refreshingly honest.”
Managing Partner
|
|
|
 |
|
| |
CORPORATE PARTNER
We have been exclusively engaged to identify a corporate partner or group for our client. This is an opportunity to to join an entrepreneurial, fast growing, national firm looking to leverage their unique strengths, platform and local clients to make Denver a key office in their firm. Learn more.
For
Discreet Consultation
CREDITORS RIGHTS PARTNER
We have been exclusively engaged to identify a creditors rights partner for a national law firm with a long history and substantial client base in creditors rights. This opportunity is part of an effort to build a full life cycle financial services group in their Denver office, similar to their approach nationally.
The ideal candidate must have proven experience in creditor's rights representation and enforcement including loan workouts, restructurings and bankruptcy. If you are a high energy, entrepreneurial individual looking for the support to take your practice to the next level this opportunity is worth examining.
For
Discreet Consultation
GROWING YOUR FIRM?
We always represent excellent partner level attorneys interested in the right
opportunities. If you are looking to grow your firm or develop a practice area,
please contact Marcus Ollig at 303-825-4456.
For Discreet Consultation
|
|
|
 |
|
| |
Feb 5, 2010
9:00 am - 4:30 pm
Federal Practice Update 2010 - WEBCAST
CLE Live Webcast — Webcasts run from your desktop, Denver
Check COBAR website for pricing and more information.
Feb 25, 2010
9:00 am - 2:45 pm
Practicing with Professionalism
CLE Live Seminar — CLECI Large Classroom, Denver
Check COBAR website for pricing and more information.
|
|
|
 |
|
| |
Contact
The Advocates at editor@targetedlegal.com
with comments, questions, articles, factoids and suggestions.
|
|
|
