Hollywood’s film industry has lost many jobs in recent years. US President Trump wants to counteract – with punitive tariffs on films produced abroad. Can the calculation work?
Till Nowak designs entire film worlds on the computer, he is a sought -after specialist for graphic production design. He will soon go back to Germany – also because the mood in Hollywood is so bad.
There has been an extreme job doldrum for two years, says Nowak. “I still have the feeling that it will swing back.” There was an insane hype through the streaming services, but now there is also the counter effect. “There is a lot of uncertainty and the mood is slightly clouded.”
Almost 20,000 jobs disappeared
Alma Diffie is a makeup artist. In the past, she sometimes had to reject three or four job offers a day. But these times are over: “Three or four jobs a month, that’s good now.”
Almost 20,000 jobs have been eliminated or threatened in recent years, say unions. US President Donald Trump blames foreign countries – and of course the governor of California, Gavin Newsom, via whom Trump pulls on every opportunity. Therefore, Trump threatens films that are produced abroad with punitive tariffs.
Moving abroad
In fact, stylists, drivers, caterers, film crews, graphic artists and practically all in Hollywood who live from the film business have a massive problem because studios are increasingly turning and producing somewhere else. There is even a name for this: so-called “outlier productions”.
“A day of shooting in Los Angeles can cost several hundred thousand dollars,” says Maskbatuer Diffie. In Eastern Europe, however, wages are considerably lower and the cost of living too. “Productions can employ such well -trained people and still save a lot of money.”
The film industry was 100 percent in the United States, says Trump. Now that is almost no longer the case.
Other states follow up
Even in other US states, a lot of productions are now taking place, says Diffie – for example in Georgia, New Mexico or New York City. In some cases, new, modern studios are being built there. This is due to the fact that there are generous tax advantages.
California’s governor Newsom therefore followed up last autumn to keep jobs and investments in the state. He has planned up to $ 750 million in tax advantages for the film industry. Diffie thinks that is too late and there is too little compared to what other states offer.
Problem “Made in USA”
The Hollywood problem is at least partially “made in USA”. And: Films have been shot for eternal times and for a good reason or even largely “on location” – often even exactly where they play.
Hollywood can build great backdrops, and this also makes sense for films like Titanic. The new “Mission Impossible” episode, on the other hand, once again lives from shooting at original locations. Studios should not be enthusiastic if such productions are occupied with 100 percent penalty.
Trump has now announced that he wanted to speak to industrial representatives. It’s about jobs and we will get them back, says Trump. Mask designer Diffie is actually not on his political line – but she would still like to believe in it.