At least in the D.C. area, where there once used to be a plethora of design-only agencies, most designers who consult are now folded into traditional consulting

At least in the D.C. area, where there once used to be a plethora of design-only agencies, most designers who consult are now folded into traditional consulting groups that serve out a broad base of people from software developers, UX specialists, accountants, scrum managers, etc. On the other end of the spectrum, small business owners (<$1M revenue) who used to hire agencies now simply hire in-house. Web design isn't a niche occupation anymore, so its possible to just put out a listing and hire someone who will give personal service to you. I know of some web design agencies in the area that are currently in hiring mode, but they're all new brands and they're servicing external markets. The rest are long existing, and not really growing very fast--either in terms of client base or staff.