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Legal Services Industry Profile Excerpt
| SIC Codes: 7389, 8111 NAICS Codes: 54111, 541199 Page Length: 10-12 Last Quarterly Update: 11/10/2008 View Sample Industry Profile |
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The US legal services (law firm) industry includes about 170,000 law offices that generate annual revenue of over $180 billion. Large firms include Baker & McKenzie, DLA Piper, Jones Day, and White & Case. The industry is highly fragmented: the 50 largest firms hold less than 15 percent of the market. About 2,000 law firms have annual revenue over $10 million.
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, and 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 is labor-intensive, but employee contribution is high: average annual revenue per worker is about $165,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
The industry's major service is the practice of law, which is providing legal services to individuals, businesses, government, and nonprofits. Services to businesses account for almost 50 percent of industry revenue; individuals, including estates, 40 percent; government, 4 percent; and nonprofits, 3 percent. Miscellaneous legal services provide an additional 3 percent.
Law firms operate as partnerships. Operations support the provision of legal advice and other services, such as document preparation and production, legal filings, and litigation. Most work falls under the general categories of transactional or litigation law. Transactional matters occur ...
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