Do you and your company understand the legal marketplace? Do you know where to go for statistic and trend information? Envision Agency has been involved in marketing to law firms for years, and we cannot tell you how often we come across companies who are either unaware or misinformed about basic legal statistics. We are referring to information that builds the basis of any market analysis or sales plan – How many law firms are there in the U.S.? What do the top rankings in the industry measure? Where can I go for insightful electronic discovery- specific information? Here is a breakdown of important industry statistics that we have compiled from various sources. Please note that this “overview” is a compilation of industry survey information, and is no means an exhaustive list of legal statistics, research and trends.

North American Firm Size Statistics 2008    (Sources: Zap Data (a division of Dunn & Bradstreet))

• There are approximately 1,354 law firms in North America with 100 employees or more (~40+ attorneys). Of those, 375 firms have 250 employees or more (~100+ attorneys).
• Firms with 100 employees or more account for less than .5% of the entire US law firm market. 65% of all U.S. firms have 2 to 4 employees, 9% higher than last year.
• 97% of all U.S. firms and legal service providers have less than 25 employees (~10 attorneys). This represents a 2% increase compared to 2006 statistics.

U.S. Law Firm Market Surveys and Rankings     (Sources: Am Law 100; Am Law 200; 2007 ILTA Technology Purchasing Survey with Envision Agency; ILTA 2007 Technology Survey)

Am Law Revenue Rankings

• The “Billion Dollar Revenue Club” expanded to eleven firms in 2007. Skadden Arps continues to lead the pack with $1.85 Billion in gross revenues, and new club members include DLA Piper US; Greenberg Traurig; Kirkland & Ellis; and Mayer Brown.
• 49 of the 2007 Am Law 100 firms had gross revenues exceeding $500 million, 8 more than in the 2006 ranking.
• Wiley Rein achieved the largest 2007 Am Law 100 revenue increase with 169.5%, moving up 76 rankings to 64th overall.
• The Am Law 100 profitability index looks at a firm’s ability to convert revenue into profit and demonstrates who most effectively balances leverage and overhead for the highest possible firm profits. The top five Am Law 100 most profitable firms include Wiley Rein, Cadwalader, Dechert, Paul, Weiss and Cahill Gordon & Reindel.
• The Am Law 200 revenue gap widens: Despite solid numbers — increases of 10 percent in gross revenue, 5.3 percent in revenue per lawyer, and 6 percent in profits per equity partner – “Second Hundred” firms continued to lose ground to their larger counterparts in 2006.