The US legal services industry includes about 180,000 law offices with combined annual revenue of $245 billion. Large firms include Skadden Arps Slate Meagher & Flom, Baker & McKenzie, Jones Day, Latham & Watkins, and Sidley Austin. The industry is highly fragmented: the 50 largest firms generate about 15 percent of revenue.
COMPETITIVE LANDSCAPE
Demand depends on the volume of commercial and civil legal transactions and court and criminal cases. The profitability of individual firms depends on the partners' reputation and ability, and effective case management. Large firms have advantages in serving corporate customers with a wide range of needs. Small firms can compete successfully providing specialized expertise or superior outcomes and operating in a local market.
PRODUCTS, OPERATIONS & TECHNOLOGY
The industry's major service is the practice of law, which is providing legal services to individuals, businesses, government, and nonprofits. Civil law practices account for nearly 90 percent of industry revenue; criminal law practices account for just 4 percent of total revenues. Within civil law practice, services to businesses account for 40 percent of industry revenue; other civil law, 15 percent; civil negligence, 12 percent, real estate law, 9 percent; and labor and employment law, 5 percent.
Law firms operate as partnerships. Operations support the provision of legal advice and other services, such as document preparation and production, legal filings, and litigation. Most work falls under the general categories of transactional or litigation law. Transactional matters occur between ...
