When Will Law Firms Hit a Wall Over Rate Increases? | The American Lawyer - The American Lawyer

What You Need to Know

• Some analysts think rate pressure could be a concern.
• Growth in worked rates has begun to cool.
• Yet, some firms continue to raise rates and see billing rate growth.

It’s clear 2021 is going to be another profitable year for law firms. What’s unclear is just how much rate increases are shaping it; whether clients are at a breaking point or demand will remain high enough for firms to keep increasing costs at similar levels.

Some analysts suggested rate pressure would be a concern this year, and there is evidence that corporations are pushing back on their bills, and such gains are beginning to slow down. Others say a full pipeline, along with new clients and new work means rate hikes can continue unabated for the foreseeable future.

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source: https://www.law.com/americanlawyer/2021/09/09/when-will-law-firms-hit-a-wall-over-rate-increases/

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