The election and the change in control of Congress slowed down the lobbying industry last year, cutting growth by roughly 80 percent and hurting the bottom lines of some of the area’s top lobbying firms.
Though some $2.45 billion was spent on lobbying in 2006 — the highest amount ever — the growth in spending was slight; only 1.7 percent more than the $2.41 billion spent in 2005. That is a sharp drop from the 10 percent surge in spending between 2004 and 2005, and a fraction of the average 8 percent annual growth seen every year since 1996.
Work was slow because members of Congress were embroiled in the election and then either out of office or distracted by the impending change in congressional control.
“From October to December [work on] most of the issues just stopped,” said Mike House, head of governmental affairs at Hogan and Hartson. People had to reorient themselves on how they were going to approach issues.
The turmoil in Congress roiled the lobbying industry, with some firms seeing their billings shrink, in some cases for the first time in years. The top four firms — Patton Boggs, Van Scoyoc, Akin Gump and Cassidy & Associates — each had declines in reportable lobbying revenue.
“It was an election year,” Patton Boggs spokesman Brian Hale said, and “there was very little activity” late in the year.
The situation, however, might not be as difficult as it appears. The figures, compiled by the Center for Responsive Politics, are based on disclosure forms and reflect only those lobbying revenues that fall under disclosure rules. As a result the totals are likely to understate overall income.
All those who talked to The Examiner also said the slowdown was temporary and now appears to be over. The adjustment to Democratic control has been made, insiders said, and lobbyists are back in the swing with energy, climate and health issues leading areas of growth. Firms are also picking up a lot of work representing companies subject to regulation and caught up in government oversight investigations.
Holland & Knight Head of Public Policy Rich Gold was optimistic that revenues and growth would get back to normal — perhaps even surpass earlier years.
“I think we are going to see an uptick,” he said.
Top Lobbying Firms by Income
Patton Boggs LLP: $34.7 million
Van Scoyoc Associates: $26.0 million
Akin Gump Strauss Hauer & Feld LLP: $25.8 million
Cassidy & Associates: $23.9 million
Dutko Worldwide: $21.7 million
Barbour, Griffith and Rogers: $21.2 million
Source: The Center for Responsive Politics
Dee Ann Divis is the business editor of The Washington Examiner. Contact her at [email protected]
