Law Offices: Slow but Steady Top-Line Growth
Sageworks previously reviewed which industries are recession-proof. Of special interest was the alcohol industry. But that was not the only sector of the economy that held its ground during the most recent recession.
With businesses closing or merging and individuals fighting bankruptcies, legal offices continued to have plenty of business during the recession. In fact, privately-held lawyers’ offices (NAICS 54111) had sustained revenue growth, even though the average private company at the same time may not have performed so well.
More holistically, lawyers’ office have a more consistent top-line. Growth is not tremendous compared to all other private companies, but it doesn’t fluctuate more than a few percentage points year to year and seems to be less influenced by general economic health. Similar to the demand for services and goods provided by healthcare and grocers, the demand for legal services is almost inelastic.