During the month of July, my travels took me to 9 different states. Talking to people, I found that most everyone will tell you that their locality is "different", that they are harder hit than anyone else and that there are all kinds of flakes out there giving their work away.
For everything being "different" in each part of the country, it is amazing how similar the stories are. Gang, yes, the economy is little different in your town than it is anywhere else. But we are all in the same boat. People are giving their work away everywhere. Someone is always going to give a quote that is less than your cost to do a given job.
Let's put it in perspective. My grandfather told me of guys giving low ball quotes on jobs he was bidding during the 1915 to 1930 time frame. They gave their work away back then, too. My dad told me similar stories about jobs he bid during the 1948 to 1960 era.
You have no control over what other people do, you are not going to change the way they do business. Stay focused on those things you can and should control. Polish your sales skills and ask the right questions. Quit fussing and worrying about the other guy. Focus your time and attention on you. Be the best you can be, providing a good service to your customers and make a profit doing it.