How has the economic volatility and uncertainty in recent months impacted law firm financial performance?

How has economic volatility and uncertainty impacted lawfirm financial performance? In this episode of Clarity, Bill Josten and IsaacBrooks of the Thomson Reuters Institute speak with Belinda Jones, CFO ofBallard Spahr, about the mixed financial picture facing law firms in 2025.Drawing on findings from the latest Law Firm Financial Index (LFFI), thediscussion explores how firms entered the year with historically strong rateincreases but initially saw softer demand growth. That changed late in thefirst quarter as economic uncertainty and the growing global trade war droveincreased client demand, particularly in litigation and tax-related matters.While the resulting demand surge helped bolster performance, the speakerscaution that the longer-term outlook remains uncertain.

The conversation also examines the financial balancing actconfronting law firms. Despite strong rate growth and improved realization,firms continue to face rising expenses, especially attorney-related costs,creating pressure on margins. Jones discusses how firms are planning forpotential economic headwinds by closely monitoring demand trends, managingdiscretionary spending, evaluating capacity needs, and preparing for a possibleslowdown later in the year. Throughout the discussion, the speakers emphasizethat while current demand remains healthy, firm leaders should remain proactiveand disciplined in planning for a more uncertain economic environment.

3 reasons to listen

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1. Understand what the latest Law Firm FinancialIndex reveals about demand, rates, realization, expenses, and overall law firmperformance in a volatile economic environment.

2. Learn how economic uncertainty and the globaltrade war are influencing client demand, particularly in litigation, tax, andother advisory-focused practices.

3. Gain practical insights from a law firm CFO onmanaging expenses, planning for economic uncertainty, and preparing firms forpotential market shifts later in the year.

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Gain insights into the financial pressures, and opportunities, shaping law firms in 2025.