Los Angeles Times: As the Hollywood machine abandons L.A., its supporting workers struggle

[marmar]

As the Hollywood machine abandons L.A., its supporting workers struggle
Small, blue-collar businesses that sustain California's entertainment industry -- prop houses, studio equipment shops -- fight for business as film production migrates to incentive-rich states.


By Richard Verrier
July 12, 2009


In an industrial yard behind Burbank's Bob Hope Airport, dozens of orange forklifts and 135-foot-high booms stand idle, gleaming in the afternoon sunlight. As recently as two years ago, the yard was largely empty because the equipment was busy being used to hoist cameras, rig lights and build sets for "Iron Man," "Get Smart," "The Curious Case of Benjamin Button" and other movies shooting throughout Southern California.

"I've been doing this for 25 years and I've never seen such a sustained downtime," said Lance Sorenson, president of 24/7 Studio Equipment, who recently had to lay off two of his drivers and has imposed three- and four-day workweeks for the rest of his 44 employees.

Across town in Culver City, at the landmark studio where "Gone with the Wind," "Citizen Kane," "The Adventures of Ozzie & Harriet" and "The Andy Griffith Show" were filmed, there's a similar story. Now an independent production facility known as the Culver Studios, the soundstage complex just lost one of its largest tenants, the syndicated game show "Deal or No Deal." That program will tape future episodes in Waterford, Conn., a suburban town known for its nuclear power plant, large state park and assortment of shops and family-owned restaurants. The chief draw: Connecticut's 30% production-tax credit.

"It's a huge blow to us," said James Cella, president of the Culver Studios.

Others also have been hard hit by the outflow of production to other areas, known as runaway production.

At Modern Props, also in the Culver City area, nearly half the employees have been laid off, and those remaining are on 20- to 40-hour workweeks. John Zabrucky, the company's founder, thought he'd gotten ahead by opening a satellite office in Vancouver, Canada. But now so many states are offering tax incentives to film and television producers that he can't keep up. ..........(more)

The complete piece is at: http://www.latimes.com/business/la-fi-ct-runaway12-2009jul12,0,3440084.story

[SoCalDem]

1. State sponsored cannibalism in action.

All states are struggling, so it's no surprise that individual states will try to undercut other states, in an attempt to lure their businesses away, with lower taxes/no taxes, cheaper labor force, etc. Take a look at Michigan, Indiana, Ohio, Pennsylvania, etc.

It's not a net gain for the nation, it's all just a pile of losses from one state, to another.

[ProgressiveProfessor]

2. Its as much international as well, Canada has taken a lot of production work from the US as well

[imdjh]

3. On the bright side- audience participation shows being elsewhere.

When I was a kid, most TV came out of New York. Then it moved to LA. Now there is no reason for almost anything to be concentrated in one place, other than those businesses requiring a port or similar feature. Is there?

What I would like to see is corporate America moving to the places where people can enjoy some space and standard of living, but on a more permanent basis. In Tampa, we have already seen how quickly and with what ease a major corporation can move shop elsewhere, notably to India. What I would like to see is some construct which encourages businesses to move away from overpopulation centers without generating boom and bust in those domestic destinations.