The report found that net income, distributed to the equity partners who own a law firm share, dropped by 3.1% in 2022 after two years of double-digit growth. However, Burman believes that a drop of only 3.1% should be considered a victory given the decline in demand. Profits per equity partner also decreased by 3.9%, while overall revenue grew by 3%.
Despite the decline in productivity, demand, and profits, Burman remains optimistic, stating that “the sky is not falling.” He believes that law firms have the potential to recover and that the current market conditions are simply a temporary setback. In conclusion, the report highlights the challenges facing law firms in the wake of the decline in demand for their services and the need for them to find ways to keep their lawyers busy and maintain their productivity levels.

REFERENCES:

Lawyer productivity, demand dropped in 2022 – Wells Fargo report