Pandemic-Related Work Brings Windfall in Typically Down Lobbying Quarter
Several federal relief programs, coupled with varying industries looking to take advantage of those available funds, drove a strong Q2 showing for lobbying firms.
July 21, 2020 at 04:00 PM
5 minute read
Typically the fiscal quarters leading up to a U.S. presidential election are marked by a downturn in business for the lobbying industry. This makes sense, as there is often an air of uncertainty about who firms and their clients should be lobbying when it is unclear which political party will be in control come the new year. Like it has done with everything else, the pandemic has turned that on its head.
Brownstein Hyatt Farber Schreck topped the second quarter lobbying revenue list, bringing in $12.9 million over the last three months, which according to their internal numbers is a 29% increase from the same period in 2019 and a 17% increase in the firm's haul from the first fiscal quarter.
They weren't the only ones doing well. Four of the top five law firms for lobbying revenue saw an increase from Q1 to Q2, with only Akin Gump Strauss Hauer & Feld, which led the pack in Q1, showing a slight decline.
After Brownstein at $12.9 million, the top five firms included Akin Gump with $12.4 million, a slight drop from their group-leading $12.6 million in the first quarter but a 21.4% increase year over year; Holland & Knight came in at $7.15 million, up 19% year over year; Squire Patton Boggs at $6.67 million, up 11% from the same period in 2019; and K&L Gates at $5.1 million, up 15.4% YoY.
Marc Lampkin, the government relations co-chair and Washington, D.C., office managing partner at Brownstein, said he believes the increase in business is due to three primary factors: The complications around understanding the initial federal responses to the pandemic, such as the CARES Act, the Paycheck Protection Program and Main Street Lending Program; the more-than-likely prospect of more funds and aid being necessary now that the outbreaks have increased so dramatically in the last month; and the potential of a second term for the current administration, which could come with a variety of executive orders surrounding companies in China that have an effect on U.S. businesses.
"When you look at COVID-19, the line of demarcation is March 13," Lampkin said in an interview. "If you would have asked us in February if we thought there would be a rush of business, I would have thought perhaps a little. But no one could have anticipated this sort of response."
Lampkin said on top of the usual suspects involved in active lobbying, the firm saw an increase in business from companies and industry groups that normally don't pay that close attention to the D.C. lobbying scene.
"Companies realized they needed to get smart on these regulations real fast," he said.
And he isn't alone in citing the pandemic as the primary driver for lobbying growth.
"The level of activity that we have seen over the last six months is unprecedented, evidenced by back-to-back quarters of more than $12 million in LDA revenue, which are our strongest ever," Hunter Bates, co-chair of Akin's public law and policy practice, said in an email. "A major driver of this work has of course been the ongoing pandemic, which continues to have an enormous effect on the economy and touches pretty much every sector and industry."
Bates and Lampkin both agreed that the recent surge in U.S. COVID-19 cases and the anticipated relief package being debated in the House and Senate would continue to fuel growth in the third quarter as well.
"Looking ahead to the third quarter, the response to COVID-19 will continue to be a major driver of activity as we prepare for the 2020 elections and the changes and uncertainties that they may bring," Bates said in the same email.
As lobbying is a fairly static and cyclical revenue generator, it isn't surprising to find the same names at the top of the revenue list quarter after quarter. Over the past couple of years, it has been a back-and-forth between D.C. mainstay Akin Gump and Colorado-based Brownstein for the top spot.
Akin took Q1 of 2020, while Brownstein vaulted back to lead Q2. Both firms have a significant revenue lead over the remaining top firms.
Read More:
New Federal Lobbying Leader? Brownstein Bests Akin Gump in Q2 Revenues
The Elephant in the Room: How Will the 2020 Election Affect Law Firms' Fortunes?
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