The year is off to a good start, driven largely by improved demand, supporting our projection earlier this year that 2014 will be a better year than 2013. But this positive beginning comes with challenges, and some caveats.
Demand growth was partially magnified by a difficult demand environment in first-quarter 2013, creating a relatively low hurdle for law firms to clear and driving more favorable revenue performance that outpaced expense growth. The primary challenge facing law firms is that demand improved as the year progressed in 2013, which could potentially temper the robust growth seen so far this year.
