With 2019 winding down, speculation about if and when another economic downturn will hit continues to swirl. In the face of that uncertainty, Texas law firm leaders say they plan to continue building on what they do best.

Texas Lawyer checked in with the leaders of five Texas law firms, asking: Considering the potential for a recession, political turmoil and continuing fluctuation in oil prices—not to mention the number of out-of-state firms that have moved into the Texas market over the last three years—what is your firm's short-term strategy? Are you considering building any particular practice areas, or scaling any of them back, and why? What is your plan to keep your firm competitive over the next few months?

Answers have been edited lightly for style.

Wade Cooper, managing partner of Jackson Walker:

C. Wade Cooper of Jackson Walker. Courtesy photo

First, I am not really hearing any of the big banks projecting a recession in the next few months. They could be wrong, but I am hearing latter part of 2021 at the earliest.

Second, I am an optimist, but I don't think it is likely that a recession in the near term will be anywhere as bad as 2008 or 1986, and I think Texas will fare better than most areas if a downturn hits in the next year or two. That said, we are continuing to stick to our knitting and staying focused on the things we do well: continuing to look aggressively for new colleagues who are a good fit; growing in our existing footprint; keeping a tight watch on overhead so that we maintain our high net income [to] revenue ratio; and maintaining flexibility on rates.

Our bankruptcy practice is seeing great growth and that will be a good hedge if things turn slow. Likewise, with a strong litigation and finance practice we think we are positioned well for a downturn. I was asked about this a few weeks ago in London by our insurance underwriters and said with our low overhead and high-equity, low-debt capitalization, we should be in a position to be opportunistic in the event of a downturn.

Chris Hanslik, chairman of BoyarMiller:

Christopher Hanslik of BoyarMiller. Courtesy photo

We certainly are not planning to scale back. We see opportunity in the legal industry for firms focused on middle-market businesses. BoyarMiller provides high-quality legal expertise coupled with a competitive rate structure to support Texas entrepreneurs. To that end, we have grown our M&A practice this year and are looking to add to our litigation group.

Our firm's short-term strategy is to remain steadfast in our focus on the middle market and to help guide our clients in advancing their strategic business goals. At our firm's recent Capital Markets Forum, hosted for clients and business partners, a panel of Texas finance experts told the audience that capital is abundant and that it is a good time to seek funding. While we acknowledge some market uncertainty exists, particularly with the upcoming presidential election, we believe there will be moderate M&A activity and that we are well positioned to help business owners navigate the complex issues that arise.

Additionally, our strategy includes building on the strong relationships we have and adding value to the services and counsel we provide our clients. It also includes an ongoing emphasis on our people and our culture, because both are true differentiators for our firm.

Mark Kelly, chairman of Vinson & Elkins: