Survey: buoyant UK economy leaves firms more bullish than US and Antipodean practices

UK law firms are significantly more bullish than their American and Antipodean rivals, research revealed this week.


UK firms achieved an 'optimism rating' of 8.1 out of ten according to the study, compared to 7.2 in the US, 5.3 in Australia and just 4.9 in New Zealand.


The survey, which included results from 20 top-100 UK firms, showed that all the UK respondents expected their revenues to rise in 2006, compared to 87% in the US, 75% in Australia and 52% in New Zealand. Some 90% of UK firms also anticipated an increase in partner profits.


Charge-out rates are set to rise across the board, according to the survey, with the biggest increases expected in the US. More than 70% of US firms expect rates to rise by 5-10%, with 5% predicting a rise of more than 10%. Just under half of UK firms predict an increase of five to 10%. However, almost one-fifth of Australian firms thought charge-out rates may fall.


UK firms were the only ones to name strategic client relationship management as a more pressing business issue than staffing. They were more likely than firms in the other countries to have met with all of their top-20 billing clients to seek feedback in the past year.


Firms in the UK were well ahead of the pack in terms of risk management - more than half could boast that the performance of their risk management partners was fully assessed and accountable, compared to slightly more than 10% in the US and New Zealand, and none in Australia.


Tim Nightingale, founder of Nisus Consulting, which conducted the UK and US side of the research and worked with New Zealand company Team Factors, said: 'I am encouraged by the results, which reflect the fact that the UK legal industry is in good shape. It goes back to economics - the state of the UK economy is relatively buoyant. The legal sector is actually going through an upturn after a difficult period up until last year, and most of the big firms have benefited from an increase in deals, and mergers and acquisitions work.'


He added: 'Perhaps you would expect the US to be more focused on risk management than the UK, because of the propensity to litigate in the US.'