Latest LexisNexis research predicts a slower growth for the 2024 legal market
Back in October 2023, LexisNexis released its "Gross Legal Product (GLP) Index report, which predicts the legal sector growth will drop to +2% in 2024 (from +6% growth in 2023). This report looks at the key components driving growth across the legal sector, and the risks that have the potential to cause potential headaches, cashflow problems and vulnerabilities around client accounts.
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Although the past three have been challenging the index report revealed that:
- 2021 legal demand by +22%
- 2022 it grew +3%
- 2023 expected growth by +6%
The GLP Index gathers data from hundreds of sources to analysis and forecast future demand. Looking at areas of specific areas of law, the Index reveals the predictions for the following:
STRONG
- Property +7%
- Immigration +7%
- Restructuring and insolvency law +6%.
It is noted that both property and immigration law have bounced back after several years of decline. Why? Property has benefited from a record number of newly-completed dwellings with a 9% increase, and immigration has seen a big rise in work visas issued, together with more with student visas, settlement applications and citizenship applications also on the rise.
CHALLENGED
The following sectors are showing signs of struggling:
- Competition -5%
- Risk & compliance +1%
- Criminal -3%
- Employment -2%
LexisNexis's report’s editor, Dylan Brown, says of the predicted index,
"Considering the geopolitical and macroeconomic headwinds that have battered the professional services industry for the last 18 months, subdued growth is an overwhelmingly positive message to be sharing. Recent growth speaks more to the legal sector's resilience, ability to innovate when needed, and drive to power forward than it does to its impregnability.”
“Margins are becoming tighter” Brown continues. “So, there is also a very real risk of lawyer burn out as targets increase and the partner track presents greater risk. Firms need to continue investing in infrastructures that support their people rather than work against them.”
The whole report is an interesting read, and will give legal finance professionals and indication of the market and the changes that might be coming their way. You can read the whole report HERE.
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