Financial Crisis hits Private Investigators

Jan. 21, 2009 - PRLog -- A survey was sent to over 5,000 PI’s all over the world. Overwhelming results revealed that the Financial Crisis of 2008 has hit the Private Investigations Industry. The survey was conducted by Private Investigator Justin D. Hodson of Gailey Associates, Inc.

Our survey found 64 percent of Private Investigators admit they have seen a slow down since the Financial Crisis. 11 percent of the total surveyed stated that they have seen little slowdown. 12 percent of the surveyed say they have seen a major slow down in work.

The financial meltdown of 2008 has hit hard over the last part of summer and fall. However, the National Bureau of Economic Research announced on December 1, 2008 we actually been in a recession since December of 2007. The recession is attributed to multiple factors to include the housing market, credit market, and high commodity prices.

Also in our survey were more detailed questions. Through our survey it was found 47.5 percent did not alter their advertising budget. While 24.2 percent lowered their advertising budget and 13.1 percent raised it. A surprising 11 percent of Investigators surveyed say they do not advertise at all. IDC, the global marketing Intelligence group reports that advertising dollars will shift during a recession. The IDC reported that most will try to shift their money from old advertising outlets to new forms of media.

Our survey asked about new investigator competition. Our firm has noticed an increase in new investigation companies here in California which makes a slow case load even worse. 42.9 percent of investigators have seen an increase in new investigator competition. With more competition involved and a slow economy, prices are usually affected. However, this survey revealed that 13.3 percent lowered their prices. 21.4 percent raised their prices and 66.3 percent say their prices are the same. It is estimated that new investigator competition will decrease as this recession continues.

One of our questions was, “Are you worried about the future of our industry?”. 58.2 percent say they are worried about the future of our industry when 45.9 percent are not. 5.1 percent say they are very worried about the future of the industry. Our survey’s final question was, “due to the economy, have you had to find another job?”. This answer surprised us the most, 17.3 percent had to go and find another job. With the national unemployment rate around 6.7 percent, 17.3 percent is a high number.
Experts say with a tighter economy and slowing demand we need to simply cut overhead, tighten our belts and move forward. Continue marketing your company and always stay competitive. The easy days are gone but we as an industry will get through this mess.

The author of the survey, Justin D Hodson can be reached at (714) 622-1900 or via his company website at www.InvestigatorForYou.com