England 14/09/2013 – After a prolonged slow period, many UK law firms are reporting signs of growth.
A recent report produced by the Confederation of British Industry (CBI) found that firms involved in providing legal services and other professional services were more optimistic about the future. The vast majority of the law firms interviewed were very optimistic about the future. Many reported that profitability and business volume were growing steadily. This was the first rise in these metrics since February 2012. However, this time most are confident that this growth will be sustained. As a result, many law firms are investing and planning to grow over the next few years. They are recruiting and investing in new IT and offices.
The pattern of growth is mixed, with some areas of the sector growing more slowly than others. The change in the legal aid system has led to a fall in work for family law firms. In some areas of the UK, where the housing market is still depressed work is still hard to come by.
Growth for commercial law firms
However, other kinds of law firms have seen a remarkable increase in demand for their services. The commercial law sector falls into this category. After five difficult years, the sector is once again growing.
Without a doubt, the main reason for this growth is the fact that the UK economy is finally beginning to grow. However, there are other factors. The fact that many UK firms are changing the way they do business is also helping growth in this sector. Increasingly, companies are exploring legal options to help them to be more agile and more profitable. Zero hour contracts are a classic example. Firms have long wanted a more flexible workforce, but many did not realise that UK employment rules allowed for zero hour contracts. As a result, they carried on employing people on standard contracts. Only with the help of experienced commercial lawyers was it possible for UK businesses to see the opportunity and take advantage of it without breaking the law. The fact that well-established commercial law firms like http://www.capitallaw.co.uk have changed the way they work is also helping growth in the sector. They offer a broad, personal and tailored legal service, which is affordable. This means that start-ups and SMEs can now afford to take advantage of the same high quality legal advice that their larger competitors have had access to for decades.
