He's been at Dystel & Goderich for 8 years. He says the market has always been difficult. There's not a lot of money to go around. That's where organizations like SCBWI can be so helpful to writers.
It's also important that writers use the internet to promote themselves and keep up on industry news (for example, Twitter).
There are opportunities in this market. There's a lot of really good stuff to come.