Writers’ Strike Hits Hollywood Economy- From Caterers To Cowboy Outfitters

Before Hollywood writers walked off the job in early May, Pam Elyea’s prop house History for Hire filled an average of 53 requests per week for everything from period-appropriate cameras and luggage to camping gear and snow globes.

Weekly orders this year now average 26 as the strike by the Writers Guild of America (WGA) halted many film and TV productions, Elyea said. She estimates the revenue of the company, which she runs with her husband, has dropped 60% and it is falling $100,000 short of meeting monthly expenses.

“Even though there is a strike going on, it doesn’t stop my staff’s rent. It certainly doesn’t stop my rent. It doesn’t stop our utilities,” Elyea said, adding “things are just so much more expensive since the pandemic.”

Read More: Human Remains Found In Search For Missing British Actor Julian Sands

Small businesses in Los Angeles and beyond are taking a hit from the strike. Florists, caterers, costume suppliers and others have seen orders dwindle as many are still recovering from disruptions caused by the pandemic.

It is unclear how long the work stoppage will last. No new talks are scheduled between major Hollywood studios and the writers, who are seeking higher pay and guardrails around the use of artificial intelligence.

The strike’s impact would be magnified if the SAG-AFTRA actors union also goes on strike when its contract expires on Friday.

One rough measure of the current toll is the number of permits issued for movie and TV filming in Los Angeles. That number has fallen 72% from a year ago, according to permitting organization FilmLA.

Typically, dozens of scripted television projects would be in production for the fall broadcast season. As of June 25, there were just two permits to film in the city.

Economists say it is too early to measure the full economic toll.

But the 100-day WGA strike in 2007-08 resulted in the loss of 37,700 jobs in California and cost the state $2.1 billion in lost output, according to Kevin Klowden, chief global strategist for the Milken Institute. It took months for the impact to become clear, as restaurants, logistics companies and cleaning services cut staff.

That work stoppage tipped the state into the Great Recession of 2007 through 2009, and California took longer than the rest of the United States to rebound, Klowden said.

“It took a year for schedules to recover, for workers to recover,” said Klowden.