Law firm rates have been on the rise for years—and continue to climb. Yet rumblings indicate clients may have just about had enough. Is the era of continuously rising rates about to hit a snag? Or is it all smooth sailing? Renowned pricing expert and former chief practice officer Toby Brown, founder of DV8 Strategies and Marcie Borgal Shunk, industry analyst and founder of The Tilt Institute share their (sometimes divergent) viewpoints on the future of rates, profitability and more.
The Backdrop A remarkable 86% of law firms expect to increase rates in the next 12 months, according to Wells Fargo, and over a decade of data from Thomson Reuters indicates worked rates have increased somewhere from about 3% to 7% year-over-year since 2007 (only once, in 2022, not exceeding the rate of inflation). Over the same timeframe, billable hours dipped, with monthly hours clocked per lawyer sinking from close to 140 (1,680 annually) to just about 115 hours per month (1,380), according to Thomson Reuters. This combination highlights a stark fact—lawyers are working less and charging more.
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{URL}https://www.law.com/thelegalintelligencer/2024/09/20/the-end-is-nigh-or-is-it-experts-debate-law-firm-rate-hikes-ais-impact-and-adaptability/{/URL}
{Author}The Legal IntelligencerMarcie Borgal Shunk and Toby Brownhttps://feeds.feedblitz.com/-/904947155/0/thelegalintelligencer.jpgLegal Services/Commentary/Special Sections/Law Department Management/Law Firm Associates/Law Firm Management{/Author}
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