Briefing Database: APRIL 2020

It was a mixed bag of business for US firms operating in the UK in 2019, with headcount growth hitting utilisation and billing rates requiring attention.

2019 vs 2018 – Y/Y change

It’s harder to collect the bills in the UK

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Peer Monitor Perspective
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Demand for US law firms in the UK grew 4.5% in 2019, significantly higher than overall demand growth in the US (averaging only 1% last year). As a result US firms increased their lawyer headcount in the UK by 5.8%, with an overall negative impact on utilisation.

The strategy could be that US firms are attempting to gain traction in the UK market through laterals, or that they expect demand in key areas to pick up in future. Either way, relative to demand levels it’s likely that such hiring practices are not sustainable over the longer term.

UK billing realisation (for US firms) also continues to lag behind, sitting at 81.4% – almost 5% less than current performance in the US market.

In partnership with Peer Monitor

This article can be found in Briefing‘s April edition: Systems thinking