Civil procedures: Firms will experience more price competition, pressuring revenue despite steady demand

Over the five years to 2017, the Law Firms industry experienced slow but steady growth. Demand for legal services has been facilitated by increases in corporate profit margins, restructurings, secondary offerings and other capital market activity, benefitting the industry's top firms, which receive the bulk of their revenue from corporate clientele. In addition, the industry's small- and mid-sized players benefitted from a rise in Canadian business formation, which has expanded the overall pool of potential legal clientele. Lastly, strong growth in Canada's real estate market has bolstered demand for firms specializing in real estate law. Industry revenue growth, however, has been constrained by a variety of factors...read more.

Industry Statistics & Market Size
Revenue
$25bn
Annual Growth 12-17
1.4%
Forecast Growth 17-22
Profit
Employment
91,398
Businesses
35,082
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • A rise in Canadian businesses has expanded the overall pool of potential legal clientele
  • Firms turned to layoffs, pay freezes and bonus cuts to cut costs
  • As more businesses turn to in-house legal counsel, industry growth will subside
  • Industry Report - Industry Products Chapter

    Commercial law servicesIn 2017, business and commercial law is estimated to account for 41.1% of industry revenue. Practices in this area comprise financial deal-making and structuring, such as merger and acquisition activity; capital raisings involving debt and equity markets; activities relating to initial public offerings; legal services associated with private equity transactions that include leveraged buyouts; and, the securitization of credit derivatives. Commercial activities are cyclical and depend on the health of the economy and the level of investor optimism. Ove...purchase to read more.

    Additional Insights for the Law Firms Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Law Firms Industry are

  • Ability to effectively communicate and negotiate
  • Experienced work force
  • Having a high prior success rate (including completed prior contracts)
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Demand from finance and insurance in the Law Firms industry impact industry performance..

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    What's in this report

    What is the Law Firms Industry?

    This industry comprises offices of legal practitioners, such as lawyers, barristers and solicitors, primarily engaged in the practice of law. The industry’s establishments provide expertise in a range of areas of law, such as criminal, corporate, family and estate, patent, real estate and tax.

    Industry Products
  • Commercial law services
  • Civil negligence, personal injury and criminal law services
  • Labour and employment law services
  • Real estate law services
  • Other services
  • Industry Activities
  • Corporate law services
  • Criminal law services
  • Family law services
  • Estate law services
  • Intellectual property law services
  • Real estate law services
  • Tax law services
  • Commercial law activities
  • Personal injury activities
  • Property law services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • Demand from finance and insurance
  • Number of businesses
  • Crime rate

  • Current Performance
  • Steady profit
  • Other factors contributing to slowdown
  • Chart: Revenue Growth

  • Industry Outlook
  • Consolidation and slowing industry participation
  • Tempered revenue growth
  • Table: Law Firms Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Law Firms Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining In Canada
  • Utilities In Canada
  • Manufacturing In Canada
  • Information In Canada
  • Finance and Insurance In Canada
  • Professional, Scientific and Technical Services In Canada
  • Public Administration in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Commercial Leasing in Canada
  • Consumer Electronics Stores in Canada
  • Office Furniture Manufacturing in Canada

  • Products & Services
  • Commercial law services
  • Other services
  • Civil negligence, personal injury and criminal law services
  • Real estate law services
  • Labour and employment law services
  • Chart: Law Firms Industry Products and Services Segmentation

  • Demand Determinants
  • Economic performance
  • Regulations
  • Criminal activity

  • Major Markets
  • Business and corporate clients
  • Households
  • Government and not-for-profit clients
  • Chart: Major Market Segmentation for the Law Firms Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Law Firms

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Law Firms Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Law Firms Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Law Firms Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of Businesses (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Initial Public Offering (Ipo)
  • The issuing of a company's common stock to the public for the first time.
  • Insolvency
  • The inability to pay debts.
  • Mergers And Acquisitions (M&A)
  • The buying, selling and combining of companies.
  • Pro Bono
  • Professional work that is undertaken voluntarily and without payment.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Law Firms market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Law Firms:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Law Firms market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Law Firms, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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