A study conducted by Wells Fargo Wealth Management has found that revenue growth has remained stagnant in 2010, while billable hour levels also remain low.
According to the report, firms in New York and California have seen revenue jumps of 5 percent and 6 percent this year. In addition, the firms that were hit hardest by the economic downturn seem to have posted the biggest gains. However, it is the average billed-hours, which are in the low 1,600’s that is cause for alarm.
“These are no acceptable levels when you look historically,” said Jeffery Grossman, national managing director for Wells Fargo’s legal specialty group. “You’re going to see more cuts in terms of staff.”
Other reports coincide with the Wells Fargo findings, including one from Citi Private Bank’s Law Firm Group which stated that the Am Law 50 are seeing a downturn, with a revenue increase of just 0.6 percent.
