Economic Crisis Hits Private Investigators

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 1st, 2008 that the United States has
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 surveys 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. - JH
ABOUT THE AUTHOR: Justin Hodson
Justin Hodson is the surveillance director at Gailey Associates, Inc. He has been featured in The Orange County Business Journal, Orange County Lawyer Magazine, The Orange County Register , The Gavel Magazine, The Los Angeles Lawyer Magazine, Business.com, several other websites and other newspapers. Mr. Hodson has been featured on 97.1 FM and the National syndicated Radio show with Radio Host Tom Leykis. Mr. Hodson was also featured at length with Bob McCormick on KNX 1070 AM in Los Angeles, CA. Mr. Hodson will soon be featured in several news programs and other media. Mr. Hodson is a member of several investigative and business associations. Mr. Hodson is a active member in the California Association of Licensed Investigators The Professional Investigators of California Association and the National Council of Investigation & Security Services. In addition to being a member Mr. Hodson is on the Board of Directors for the California Association of Licensed Investigators.