2023 Bright Insight: The 2023 National Legal Sector Benchmark Survey Results

The greatest source of business competition continues to be large firms with national or international coverage. Similar to last year, approximately half of all respondents see these large firms as their greatest competition. Of course, Global 100 and Am Law 100 firms compete more regularly with other large firms. Boutique firms continue to be a competitor on the margins, with 9% of all firms and 6% of Global 100/Am Law 100 firms citing them as business competitors. Boutique firms are often able to carve out niches and gain market share with specific areas of expertise, but larger firms’ ability to be a one-stop shop with broad practice area and geographic coverage have allowed them to grow more quickly and will be a continued competitive advantage. 04 TA L E N T, F E E S T R U C T U R E S & I T S E C U R I T Y R E MA I N TO P B U S I N E S S P R E S S U R E S • The most prevalent business challenges for the legal sector continue to be related to talent, fee structures, and IT security. • Attracting and retaining talent is a top priority even if the second half of 2023 is a slightly softer employment environment. The legal sector continues to have a large retirement and succession challenge given that nearly a third of legal sector employees are 55+ years old. 8 • Most firms are looking to organic growth to increase profitability in 2023. This includes strategies to increase business with existing clients and to bulk up existing practice areas through recruitment of laterals. • Large firms plan to be more aggressive with service line expansion, however. Nearly half of all Global 100 and Am Law 100 firms are expecting to improve profitability by adding new legal practices. TAKEAWAYS

Approximately half of all respondents see these large firms as their greatest competition.

8 Bureau of Labor Statistics

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