Watch both the national and local unemployment rates. Remember, Lotus professionals who've just lost their full-time direct hire positions are now likely freelance consultants until their next full time job. The more of them, the more local competition. The more competition, the lower the rate you'll be offered.

Watch your client's stock. Companies usually invest in new projects when their stock is stable or rising. If your biggest client is privately held, track the stock of a few regional competitors, as things will be similar. Also, watch the stock of companies where you want to work. As a prospective client's stock rises, call them as new projects could be around the corner.

Monitor "bench-time" of local and national consultants. Stay in touch with consultants who work for IT Factory (at http://www.itfactory.com), the Big 5 firms, and leading national firms like Ajilon (at http://www.ajilon.com), or Metro Information Services (at http://www.metrois.com) to see if they have more workers "on the bench" than last month. "Bench-Time" for them signals lower rates for you.

Track contract jobs on Web sites like http://www.JustNotesJobs.com or http://www.LotusNotesJobs.com. As the total number of contract jobs on these boards increases, your time between assignments is likely to decrease. You can watch this locally and nationally.

Watch the direct hire market. Stay in touch with recruiters who place professionals in the Lotus marketplace, and keep your resume on file with them. Recruiters often know hiring managers who have budgets for contractors and hiring, despite company "hiring freezes." If you'd like to stay in touch with me on this topic, I can be reached at dan@consearch.com.

By utilizing a few of these tools, you'll be able to track your value in the marketplace, adjusting your rates and desired contract lengths accordingly. This will help maximize your income and reduce downtime between projects.

Predictions for the near future
Here are a couple predictions for the coming year.

Rates will continue to slip for the next five months. Look for improvement in early October, when companies rush to complete slowed projects for the year's end. In Washington D.C. and areas where the defense industry is headquartered, October 1 should mark dramatic short-term improvement in the contracting market and then level off to reflect the rest of the nation.

Time between assignments will increase for most independents as projects continue to be "put on hold" through the summer months. The worst downtime will be late July through August.

Quick tips for contracting success
If you're considering self-employment, wait until autumn, unless something "rock solid" and at least six months in duration comes your way.

If you're currently on assignment, take some time this month to line up work for the next 90 days, and make certain your current project will continue to be funded or try to line up your next assignment.