LOS ANGELES, June 28 (Reuters) – Before Hollywood writers quit their jobs in early May, Pam Elyea’s props company History for Hire was answering an average of 53 inquiries a week for everything from period cameras and luggage to camping gear and snow globes.
Weekly orders have now averaged 26 this year as the Writers Guild of America (WGA) strike has halted many film and TV productions, Elyea said. She estimates that the business she runs with her husband has dropped 60% in revenue and is missing $100,000 in monthly expenses.
“Even if a strike is underway, it does not stop my employees’ hire. It’s definitely not stopping my rent. It’s not stopping our supply services either,” Elyea said, adding, “Things have just been a lot more expensive since the pandemic.”
Small businesses in Los Angeles and beyond are suffering from the strike. Florists, caterers, costume suppliers and others have all seen their orders fall as many are still recovering from the disruption caused by COVID-19.
It is unclear how long the work stoppage will last. No new talks are planned between major Hollywood studios and writers demanding higher salaries and protections for the use of artificial intelligence.
The impact of the strike would be amplified if actors’ union SAG-AFTRA also went on strike when their contract expires on Friday.
A rough measure of the current number is the number of film and television permits granted in Los Angeles. That number is down 56% from a year ago, according to the FilmLA licensing organization.
Typically, dozens of scripted television projects are in production for the fall broadcast season. As of June 18, there were only three people in town with a filming permit.
Economists say it’s too early to quantify the full economic damage.
But the 100-day WGA strike in 2007-2008 resulted in the loss of 37,700 jobs in California and cost the state $2.1 billion in lost production, according to Kevin Klowden, the Milken Institute’s chief global strategist. It took months for the effects to become apparent as restaurants, logistics companies and cleaning services cut staff.
That work stoppage caused the state to slide into the Great Recession of 2007-09, and it took California longer than the rest of the United States to bounce back, Klowden said.
“It took a year for schedules and workers to recover,” Klowden said.
This time, companies might be more vulnerable.
“There are people who have barely recovered from COVID,” said Ross Garner, managing director of Entertainment Group at NFP, an insurance broker for rental homes, production and audio/video companies. “They really don’t have the reserves that they had four years ago, pre-COVID, to get through this potentially longer period.”
Most of NFP’s clients have laid off at least 35% of their employees. A sound stage rental company cut its workforce in half and laid off janitors, stage managers and others.
Inventory reduction
Sassy Craft Services, which caters to sets, used to book about eight orders a month on productions for companies like Netflix (NFLX.O) and HBO (WBD.O), owner Danni Sapp said.
That dropped to about three, Sapp said. She helps fill the gap with smaller works, such as providing coffee for a store opening.
Sapp is now considering diversifying her income streams by becoming a Pilates instructor.
“It’s something I’ve always wanted to do and now I have time to do it, which is very different because I’m usually very busy,” she said.
Some support is available. California’s work-sharing program aims to help companies avoid layoffs. For example, an employer can reduce an employee’s hours to four days a week and ask the state to temporarily cover the fifth day.
Nonprofit organizations also help. The Motion Picture and Television Fund, which supports workers across the entertainment industry, said it received nearly 1,000 strike-related requests for help from May through the third week of June. That’s three times the normal number.
The strike is also spreading to states like New Mexico, which have become popular filming locations.
Vintage western clothing store Kowboyz is a tourist destination in Santa Fe and was featured in Vogue magazine for its “rodeo-ready” clothing.
Owners Cristina and John Iverson said movies and TV shows account for 10% to 15% of sales. It provided the wardrobe for the Outer Range series and the Waco miniseries, for which the costume designer memorably purchased 150 pairs of cowboy boots to outfit the series’ FBI agents.
Actors and crew members often shop at the store when they are not on set, giving them a higher income.
“We’re on the film industry’s resource list,” said Cristina Iverson. “We’re on their radar.”
With production in Santa Fe shutting down during the strike, owners withdrew spending. John Iverson said the store hasn’t been able to fully replenish inventory since the pandemic-related disruptions. Iverson estimates that the selection of cowboy boots at Kowboyz is down to about 1,500 pairs, which is about half the typical inventory.
“It was very difficult for us to bring back what we once had,” Cristina Iverson said, citing the difficulty of reestablishing a supply chain of pickers scouring flea markets for used and vintage items. “Now there’s the writers’ strike and we’re losing the films that have been so good for us.”
History for Hire has also restricted purchases, Elyea said, and had to turn down a striking writer who was calling in hopes of making some money by selling her 1990s electronics.
“You’re the reason I can’t buy from you,” Elyea told the author. “She hadn’t made the context that her actions had an impact on the community. We are all connected.”
Reporting by Lisa Richwine and Dawn Chmielewski; Additional reporting by Danielle Broadway and Rollo Ross; Edited by Mary Milliken and Sandra Maler
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