Same here. Small service agencies are going bankrupt and even larger studios have less work, having to reduce salaries and move to multiple services like prototyping and production to scrape in the salaries. So the way to stay ahead, besides social policies, is to focus on specializing and highly innovative multidisciplinary (the hard) work.
I am more and more wondering how we can stay ahead with China taking over more and more. Still for every 5 Chinese designers/engineers one European or US trained professional keeps the balance, but they are progressing exponentially so we need new ideas.