The Litigation Consulting Report

by Ken Lopez Founder/CEO A2L Consulting Last month the Federal Reserve raised interest rates for the first time in nine years. This action signals that the Fed believes we are entering a period of sustained and significant economic growth. Although the Great Recession officially ended in 2009, for a lot of people, this Fed action may mark the emotional end of it. Economic conditions do feel considerably better than they did just a few years ago. Most people who want a job can get one now. However, most jobs pay less than they did 10 years ago. Furthermore, a staggering 40% of people over the age of 16 do not have a job. That's the lowest number since the Jimmy Carter years. So, we can't quite say things are rosy, but we can't say things are terrible either. After all, in 2009, more than 700,000 jobs (including a lot of legal industry jobs) were being lost per month, and now, 250,000 jobs are being added to the economy in a typical month. What does this all mean for those of us who work in the litigation industry? Will 2016 be a good year? The answer, I believe, is that while it will not be an incredible 2005-like year, it will probably be a little better than 2015, and that's not too bad. Let me support that belief with some additional details. This is the fourth year I've written an economic forecast for the litigation industry. For 2013, I forecasted improving conditions for all of us, and we saw the economy grow by 2.3%. That was actually a significant improvement over the year before which saw many law firms not growing or even shrinking. For 2014 (also including a mid-year update) and 2015, my forecast was about the same, and so were the results - modest growth. For law firms and their litigation departments and for litigation support firms like A2L Consulting, these past several years have been growth years. But will it continue? After all, recessions come about once every seven years, and the last recession occurred in 2009.

by Ken Lopez Founder/CEO A2L Consulting