Legal Executive Institute September 22, 2019
At the end of fiscal year 2018, a year of unprecedented growth in the Australian legal market, the overall feeling after was one of optimism, but also tempered with caution.
Many legal market observers believed that this level of growth was not entirely sustainable, yet the common warning signs of impending contraction were notably absent.
Into this mixed picture, a new report, 2019 Australia: State of the Legal Market, is released by Thomson Reuters Peer Monitor, Acritas, Alpha Creates, and Barolsky Advisors that outlines the major trends impacting the legal market in 2019 and investigates what is going to drive innovation for 2020.
The report shows that 2019 was still largely positive, and the market continues to outperform the majority of global legal markets in terms of growth — but in the back of some observers’ minds, the fear of reaching the ceiling persists.
The report also details how such massive levels of growth seen in 2018 compares to 2019 in the wake of such boom conditions. For example, when The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry issued its Final Report in February, which lead to a contraction in demand in Q4, and left the door wide open for whatever 2020 has in store for Australia.
Among the key metrics examined in the report, were that demand increased on average by 3.9%, and revenue was up by 7.0% by year’s end. This was in part due to the above-average rate increases of 2.2% this year, after being relatively flat in 2018.
Other key findings include:
- Qualified fee earners (QFE) showed significant growth of 5.7%;
- Utilisation, or the average amount of hours worked per QFE, decreased by 1.6%;
- Corporate (General) was the fastest growing practice area (10.2% growth YoY); and
- The Sydney Market experienced the greatest increase in demand.
To be sure, 2020 is sitting in the wake of a financial boon, which is uncharted territory for the legal services industry in Australia, making the importance of keeping well informed of the shifting tides invaluable.
You can download your own copy of the “2019 Australia: State of the Legal Market” here
Acritas can provide further benchmarking data on other topics such as, legal spend and remuneration on its online platform for legal departments. We provide this for free as an incentive to participate in our global research in return for participating in a 25-minute Sharplegal telephone interview discussing your perspectives of the legal services market. The Analytics tool also provides access to a database of exceptional Star Lawyers, as recommended by other survey participants, across more than 50 countries worldwide. You can see why the Star is recommended and the demographics of the client making the nomination.
To participate and access Acritas Analytics, please email email@example.com with your preferred time and phone number. You can also click here to use the online booking app. You must fit our qualifying criteria to gain free access which includes a minimum revenue of $50m and being a decision-maker when it comes to procurement of legal services. Paid access is available for $995 per annum.
For further information on how Acritas can help you and your organization, please contact Lizzy Duffy on firstname.lastname@example.org or +44 (0) 808 178 3020 or Jo Summers on email@example.com or +44 808 178 3020.