Van. fighting supply crisis

By all accounts, this summer was yet another business blockbuster for the Vancouver film and television industry. But with the unprecedented business has come unprecedented unease about the city’s ability to absorb the work.

Projects budgeted for Vancouver eventually slopped over into Alberta and other provinces because there was no room. Shows such as These Arms of Mine imported trucks and gear from Washington State and other places. And production supply companies were pushed to the limit.

‘The crisis is coming,’ predicts Mike Kaerne, owner of HollyNorth Production Supplies in Vancouver. ‘A lot of guys like me are scrambling and it’s only going to get worse.’

With only three quarters of his fiscal year elapsed, Kaerne has already achieved 150% of his ‘annual’ sales projections.

‘I’m spending a lot of time researching new products and bringing in new equipment. Every dollar I make is plowed into the business for inventory and equipment to service our customers. I’m now thinking about taking on an investor to ride the wave.’

That’s the challenge facing local production supply companies: surf or get swamped. But does that mean investing in rapid growth to increase capacity or staying put to hedge against the fickle industry that might pull back next year?

‘It’s hard to judge if we are going to see any more business,’ says Keith Lapp, co-owner of Vancouver Mobile Dressing Rooms. With 40 trucks, Lapp can handle 12 shows at a time. ‘We have everything we have out working now. But nobody in this racket knows who is going to be here next month.’

Still, most production supply companies are bullish that the strong growth trend will continue and that Vancouver’s ability to cope will catch up to the higher volumes demanded.

‘We could have had twice the amount of equipment and we still wouldn’t have had enough,’ says Brad Hodson, owner/operator of Arrowhead Camera Systems, which supplies camera cranes and remote camera systems. In his first official year of business, Hodson says he ‘went well beyond his expectations.’

Hindering his expansion plans is a lack of qualified workers, he says. ‘My first [expansion] thrust is to get the people then go for the equipment.’

‘We took a leap of faith that the industry would grow and that’s how has turned out,’ says Judie Dahl, co-owner of Acme Prop Shop. Her company experienced 35% growth in its second year of business and expanded from a warehouse of 8,000 square feet to 20,000 square feet. Dahl is projecting 20% growth next year, though she calls that a conservative estimate.

‘It’s still a gamble,’ she admits. ‘We’re taking a middle-of-the-road approach in terms of investing,’ which means more inventory and more space.

‘It’s hard to gauge whether this is a 20-year business, forever business, or hiccup. We really support the local industry – giving them big discounts – to create the indigenous industry because that is long-term.’

Dahl sees the boom market lasting another three to five years before it begins to level off or begins to dip. ‘Everything is cyclical,’ she says.

Despite the perception of Vancouver being a seller’s market, however, most suppliers have not increased their rates. In fact, suppliers like Dahl say that many producers insist on grinding prices as a move to exploit the city’s reputation as a cheap place to shoot.

‘Our rates are the same or lower,’ agrees Lorne Lapham, owner of Lorne Lapham Sales and Rentals, which supplies specialty lighting and other products. ‘We want to supply the right service at the right price.’

Keeping ahead of the business curve, though, means expanding in terms of operating space and services, knowing the new technologies such as digital video, and exploring more niche markets such as lcd screens and monitors.

But Lapham is cautious about publicizing his growth – which he calls ‘very good’ – because of the growing animosity from California. ‘They regard us as the reason for softness in the California market,’ he explains.

At Showbiz Expo in June, he notes, were slogans such as ‘Build the u.s. film business, shoot a Canadian.’

One supplier enjoying increased rates is Location Caterers. Owner Mark Dibble says his company is running at 100% and at 20% higher rates. Five trucks are on the road and two more – at $200,000 each – are on order.

‘As long as the dollar stays where it is, the business is going to continue,’ says Dibble. But he is concerned about the dilution of skills in Vancouver crews. ‘I walk onto a set and I don’t recognize anyone. There are production managers – I don’t know where they come from. The quality of the crews has to suffer.’

However, Mark DesRochers, manager of production locations services at the B.C. Film Commission, maintains that the perception that Vancouver is overbooked is not accurate.

‘Despite the rumors, we’re still open for business,’ he says. ‘We have to remind people that shows wrap. We have 10 shows completing in the next few weeks. That’s 10 crews ready to go.’

He says the panic comes from shows that don’t allow enough prep time and have trouble getting through the production pecking order of shows that have had more lead time to get ready.

Fatigue is another factor, he adds. When business is up – as it is across the industry – DesRochers says people need to take a break. ‘In this kind of growth trend, there is this kind of psyche [among workers] that if ‘I don’t take this job, I’ll never work again.’ It’s a kind of tunnel vision. There is enough work to go around.’

The real challenges, he says, are trying to stem escalating costs and maintaining skill levels among crew. On the latter point, DesRochers says training initiatives at the unions and skills development programs at institutions such as Capilano College or Vancouver Film School are starting to pay off and churn out more skilled workers.

‘There is a real awe out there,’ says Acme Props’ Dahl, referring to the mood of people in the industry after such a busy summer. ‘People are moving through the ranks really fast. There is a lot of inexperience out there, but everybody’s pulling it off really well.’