Hello all,
I'm a newbie (found this today as well). I started my patent illustration firm in 1984. I worked at Bell Labs prior. I was one of the first patent drafting service firms to use a computer to do their work. BTW, it cost me $45,000 for my first computer back then, it was even on wheels it was so large.

In 1999 I had 13 employees, I now have 3 full and 3 part timers (and losing 1 more full time in two weeks). We averaged close to 200 cases per month in 1999 and now we are under 100 per month, and running a heck of a lot more efficiently as well. We have produced over 23,000 patents (not drawings, patents) since 1984.
All this to say that the PTO has changed it's process and it's rules as well. They have virtually eliminated the office draftsperson (there are still some left, with almost nothing to do), and they have greatly loosened their rules as well. They eliminated the cross hatching patterns (plastic, metal and ceramic hatch patterns aren't needed anymore) but a general hatch pattern instead (making it easier for Visio people).
I don't want to discourage you, however, if you had been around during the "glory years", you would be discouraged already. Going from 200 patents per month to less than 100 can be discouraging.
Our clients are doing their own simple work and then coming to us for the more complicated stuff. Back then (remember the glory years), our simple stuff's profit helped to defray the cost of the more complicated. Now, without the easy stuff, our complicated drawings has increased but not to the level that would be equal to "them there glory years".
Fortunately the money earned back then was used to generate faster drawing solutions in house, and we also developed web-based databases that our clients take advantage of. This process saves us a lot of management time and this savings is passed to our clients, which still makes us popular because our system is easy to use and our clients save time and money because of it. In other words, we made our company a much more efficiently run organization.
So this has helped up in our downward trend.
Stay in there, there will always be a need for good illustrators. Just don't lower your quality for the sake of time, that is not the answer!
I believe that we have seen the "bottom" of this trend anyway. There wasn't enough work for all of us and over the past 4 years people have slowly moved out of the business. I have seen a slight increase in work but a great increase in new clients over the past year, especially the last 6 months. Meaning that my clients are doing more on their own, but there are more clients that need work (their illustrators are leaving the field). My opinion of course. So stay in there, you'll slowly see an increase.
Jim
PS Just remember the old saying "Patent Draftsman never die, they just shade away".