Legal Services Industry Profile

Firms in this industry provide the services of lawyers and other legal practitioners to individuals, businesses, government agencies, and nonprofits. Major firms include Baker & McKenzie; Gibson, Dunn & Crutcher; Greenberg Traurig; and Latham & Watkins (all based in the US); as well as Clifford Chance and Linklaters (both based in the UK).

The global legal services market is forecast to generate about $750 billion by 2015, according to MarketLine. Of the world's 100 highest-grossing firms, about 80 are headquartered in the US and about 10 are based in the UK. Larger firms continue to expand their global footprint to take advantage of rising demand for international law expertise.

The US legal services industry includes about 180,000 establishments with combined annual revenue of about $280 billion. Moderate growth is forecast for the next two years. Business transactions are a key driver of growth.

In addition to offices of lawyers, the industry includes establishments that provide paralegal, notary public, process serving, and patent agent services.

COMPETITIVE LANDSCAPE

Demand depends on the volume of commercial and civil legal transactions and court and criminal cases. The profitability of individual firms depends on the partners' reputation and ability, as well as effective case management. Large firms have advantages in serving corporate customers with a wide range of needs. Small firms can compete successfully providing specialized expertise or superior outcomes and operating in a local market. The industry ...