As the year draws to a close, the service production sector must cope with a double dose of hardship.

With Writers Guild of America members on strike for a sixth week as of mid-December, U.S. TV series have shut down, some feature-length projects are on hold, and the upcoming pilot shooting season looks iffy. Meanwhile, the loonie was worth $0.99 against the greenback as of Dec. 11, which has given Hollywood projects another reason to stay away.

What it all adds up to is an uncertain 2008 for those that make a living off guest productions. Across the country, insiders agree that business is down, and the industry is reacting by modifying business plans, looking to provincial governments to ramp up incentives, rely more on domestic productions, and, in some cases, consider layoffs.

Below is what five players had to say.

Michelle Grady, VP & GM, Technicolor Creative Services Vancouver:

The strike has definitely had an impact. We saw it immediately in TV production. Generally, we aim for an equal balance between feature films and TV, but we’re definitely feeling it in TV.

However, we are seeing feature film work pick up, when it usually slows down at this time of year. What we’re seeing now, because of the possibility of the [U.S.] actors strike next summer, are more features starting here in December and January trying to wrap before the summer. We’re really hoping that the features will help balance out the loss in TV.

[Regarding the strong dollar], we’re like everybody else and seeing the impact. If you ask producers and the B.C. Film Commission, they’re saying that for sure we’re losing productions to other areas.

It all makes for a very unstable time. But I have confidence for the industry to bounce back. We have a talented industry here. We do good work and have the infrastructure. Definitely, we’re in for the long haul.

– Ilona Beiks

Chad Oakes, co-chairman, Nomadic Pictures, Calgary:

The soaring dollar is absolutely brutal. We can function in this industry at [a loonie that is] US$0.75, US$0.80, even up to US$0.90, but we can’t function at an on-par dollar.

The majority of our projects are Canadian content but are not funded by Telefilm Canada and the Canadian Television Fund, so we have to presell our movies to both American TV and foreign territories to provide financing. These funds [including international sales] are all paid in American dollars. Up to 50% to 70% of the budget can be accessed from international and U.S. presales, and those funds are coming in at a far lesser value than they did before.

We are trying to figure a way to cut costs and not go into these movies losing too much money – for example, maybe shooting a feature in 20, instead of 25, days. And we are going to pick and choose movies that still carry some economic upside and pass on other stuff. We will shelve some projects we have developed until the dollar drops.

– Cheryl Binning

Rick Perotto, business representative, IATSE Local 667, Toronto:

No shows have stopped shooting in my jurisdiction – from Ontario to Newfoundland – because of the WGA strike. There’s a slowdown coming up, but it’s difficult to tell the extent. Shows normally ramp down at this time, but next year, when U.S. pilots start up, that’s when we’ll feel the crunch. Our crews aren’t negatively affected like Vancouver’s. We have more Canadian productions, while they have more U.S.

Ironically, our members who crewed up on Hollywood shoots benefited because there was a ramp-up of productions from August onwards in anticipation of the strike. It helped us get through a rising loonie.

On a marketing trip to L.A. in anticipation of the rising dollar, we asked studios, ‘What’s the breaking point where you’d no longer come to Canada?’ That week the dollar rose from US$0.76 to US$0.78 and we panicked. Their answer: ‘You’ve passed it by four cents.’ Funny thing, that studio was here when it passed US$0.98. It’s twofold. With studios stockpiling productions and ignoring the volatility of the dollar, there’s been a silver lining.

– Sherry Smither

Mel Hoppenheim, president, Mel’s Cité du Cinéma, Montreal:

Strikes are not good for anyone. Last year, with the union squabbles [between IATSE and AQTIS in Quebec], we lost a couple of shoots to Toronto and Vancouver. Once [the WGA] strike is over, then we’re promised another one [with SAG]. We’re waiting on the effects of all these strikes. It’s scary for everyone.

Next year is still unclear for us, but we’re going to have to live with the reality of a stronger dollar. The Americans go wherever they can get locations and inexpensive labor. We benefit in that Montreal and Toronto are in close proximity to New York, while Vancouver is close to L.A.

I think they will keep coming so long as our provincial governments entice them and keep them here with tax incentives. This is not money lost; it’s money gained. There is a ripple effect in this business: for every dollar spent there’s another two that get spent, making it a very sound investment for governments.

– Matthew Hays

Rob Riselli, GM at equipment supplier PS Atlantic, Halifax:

The last couple of [Hollywood] projects that have shot here have been trying to lock in the dollar at a certain rate. If they don’t, then they start slicing their budgets, which obviously affects companies such as ours. Particularly with [the loonie] going US$0.95 and above, there weren’t a lot of projects shooting here that were American-based.

Over the last four or five years, about 65 percent of our business has been Canadian-based…We just keep tabs on our Canadian customers and [make] sure we’re in the loop as to what their potential projects are, and when an American production comes up, great.

What you’re going to see, from a supplier’s standpoint – everybody is going to hunker down and streamline, and you’re going to see layoffs. You’re going to see the tightening of the belt…All of a sudden you have an influx of talent that usually would work on those American productions that will now flood the market. Where you once had enough crew, now you have too much crew.

– Carsten Knox