Local lawyers are still a prime choice in the market

The legal market in the East Midlands is strong in a number of key business centres, particularly Nottingham, Leicester and Derby but it is also spread across more rural areas and among smaller towns.

The accessibility of local lawyers is often cited as an important driver for choice in the legal market and so firms invest in recruiting people committed to the region. For lawyers themselves, the region offers attractive places to live, lots of opportunities to enjoy life outside the office and a truly diverse culture.

Law firms in the East Midlands, like other businesses around the country, have found the last couple of years very challenging. The state of the UK economy has been influential in leading clients to demand more from their lawyers, while at the same time looking for firms to reduce fees. There have been increased demands for fixed fees as opposed to traditional hourly rates, an increase in the use of paralegals and greater emphasis placed on profitability.

Among the profession there has been quiet disbelief about the demise of established firms like Cobbetts and Challinors. Their misfortune does of course present opportunities for other firms to acquire new people ?and new clients.

The opportunity to recruit in missing areas of expertise represents a less demanding investment than a full scale merger. Locally, some smaller firms have responded to the financial pressure by merging, but competition looks set to continue with larger corporate practices eyeing up opportunities to expand into the region.

However, midway through the financial year, caution is carefully evolving into optimism, with a regionally reported increase in demand for legal services across a variety of practice areas regionally. However, this is not a time for complacency - the legal landscape has changed significantly in recent times.

ABSs are more productive

The number of alternative business structures is increasing, although the pace of change has been slower than many predicted. There remains the prospect of new entrants to ?the legal market with deep pockets, creative marketing strategies, strong brands and ?the potential to provide a wide array of services.

Law firms are responding, but ?many suggest not quickly enough; already research is emerging which suggests that ABSs are more productive than traditional law firms.

An important lesson of the recent economic downturn is that success is all about responding to change and not just about generating growth. In response to litigation post Jackson reforms, we've set ?up a new business line to complement existing insurance, commercial and public sector offerings, in which our Leicester office is playing a key role.

By investing in people and new technology we aim to continue to provide a local service to the East Midlands market. SJ

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