On Location in Rural America

Making movies is big business in the United States, and as the film industry continues to become more location-oriented, many rural communities are benefiting. While the film industry can boost local economies, there is growing concern over the increasing number of US film studios choosing to make their movies offshore because of the incentives that other countries offer.

The Department of Commerce Migration of US Film and Television Production report released in 2001, estimates that film production and distribution generate more than $20 billion in economic activity in the United States per year. Data from the 1997 Economic Census also indicates that the motion picture production industry employs more than 270,000 workers in the United States, with an annual payroll of $10.4 billion – more than the numbers of workers directly employed in the steel industry.

Laurie Holden, (l) and Jim Carrey starred in the 2001 movie, The Majestic, filmed in Humboldt County, California

These numbers are substantial, but the Daily Variety, recently reported that feature films shot in Canada have cost the United States economy $1.8 billion and 22,400 jobs over the past three years, (Feb. 5, 2002). Stephen Katz, Co-Founder of the Center for Entertainment Industry added that many film studios prepare their film budgets assuming the movies will be made in Canada. Some industry experts have cited the US dollar’s purchasing power abroad as the primary reason for the exodus, but according to the Variety article, others have blamed the unwillingness of US unions to make concessions for specific work tasks that foreign workers are willing to do.

The Department of Commerce report also indicates that California, New York, Texas, Florida, Illinois and North Carolina account for about 88 percent of national revenues generated directly by the motion picture

“The playing field has changed. One of the growing obstacles for many film commissions is being able to compete for these projects.” - Mary Nell Webb, Director, Western North Carolina Regional Film Commission

industry. But as a result of the increase in runaway productions, the Midwest Office of the Directors Guild of America, which monitors production activity in both the Midwest and the Southeast, reported a 15 to 20 percent drop in feature film and television production in these regions in 1998 and 1999 compared to 1996 and 1997.

Movie Industry a Rainmaker
for Washington

Despite the number of US films produced overseas, many states are still thriving and taking steps to keep movies on US soil, especially in rural areas. For example, in l997, $11 million was spent in rural Washington by films, television and commercials. As a result, the Washington State Film Office initiated a Rural Economic Development Program that is the Film Office’s priority outreach program to rural communities around the state. It is designed to educate their statewide partners about the film industry and to educate their community about the economic benefits of production; the marketing value and job creation opportunities for Washington residents. The program’s present focus is to train statewide liaisons in community readiness, and to create a resource network of location information and photos. They also offer various hotel and tax incentives to film companies.

Hollywood Goes North

The Humboldt Film Commission, located in Northern California, promotes the region as a cost effective and location-rich area for filming and acts as a liaison between filmmakers and the communities. Barbara Bryant, Humboldt County Film Commissioner said, “We attend film making trade shows and respond to statewide film commission location opportunities. We also hold local workshops for individuals and businesses that want to learn about negotiating with filmmakers interested in using their property for filming. We also assist the filmmakers in obtaining the proper filming permits from county, city and state entities.”

“ “Our role, as indirect as it may be, provides a good link in the network between the Western North Carolina Film Commission, film companies and local governments. We know our counties well, and if the filmmakers are looking for a specific attribute or setting for their movie, we have people who can provide assistance in helping the film commission locate what they are looking for.” - Richard Fender, Executive Director, Region D Council of Governments

Last year’s feature film The Majestic was shot in Humboldt County, generating local revenues between $5 and $7 million. However, Bryant added that they also attract a great deal of commercials that generate an average of $1 million in revenue.

Bryant noted that The Majestic allowed local filmmakers to build their resumes and gain national recognition while spurring local film industry growth. A local casting director, numerous acting extras and an upgrade to one community’s street light fixtures, at no cost to the community, were also results of the movie.

Bryant remarked that being a rural location has its selling points, such as plenty of scenic, unpopulated spots for shooting film and generally a lower labor cost. Being rural sometimes complicates matters. The geographic area is larger and requires more time to show prospective filmmakers the possible filming sites. Bryant said, “Knowing the local community and its leaders is vital to making things happen.”

Cameras Roll On in North Carolina

According to the North Carolina Film Commission in Raleigh, the film industry contributed more than $250 million to the state’s economy in 2000 and over $6 billion since 1980. It hosted 81 major productions, up from 65 in 1999, including 56 television episodes, 19 feature films and six made-for-television movies. The industry has produced over 600 movies and television shows, and has created more than 79,000 local jobs since 1980.

Local hotels, restaurants, furniture outlets, grocery stores, construction companies, auto rental agencies, caterers, lumber companies and office supply stores have also benefited. “Seventy-five out of the 100 counties have had movies and/or portions of movies filmed there,” said Randy Schumacher, Marketing Specialist for the North Carolina Film Commission.

Schumacher added that filmmaking has resulted in long-term benefits, including blending into the state’s tourism industry. Although The Last of the Mohicans, filmed in Asheville, and in surrounding communities, including Chimney Rock Park and the Biltmore Estate, was released more than 10 years ago, the community is still feeling the effects. “People want to see where the movie was filmed. We have even had requests from couples wanting to get married on the stone bridge, [a scene in the movie],” Schumacher said. There is also no infrastructure development necessary when filmmakers come to town. “They come in, set up, clean up and leave,” but they leave a very positive impact on our economy and our image,” he noted.

Knowing the local community and its leaders is vital to making things happen.

Even though the film industry has contributed substantially to North Carolina’s economy, and has established the state as number three behind California and New York for hosting movie and TV productions, Shumacher said that in some instances residents have voiced concern over how their communities would be portrayed in a movie. Residents have also questioned how filming would disrupt traffic and the flow of the town.

The weekly drama Dawson’s Creek is filmed in Wilmington, a city that has experienced substantial economic benefits including increased tourism, temporary jobs for local residents, and a positive image of the city. Johnny Griffin, Director of the Wilmington Regional Film Commission, Inc., explained that his organization relies on many of the area’s rural communities when looking for prime filming locations. “There is also the economic benefit for some of the more depressed areas who are looking for some infusion of cash,” Griffin said.

Griffin noted that movie making is not geared toward long-term job creation for rural communities. Most film crews come with a skilled, trained workforce because they are only in town for a short period, and there is no time to train local people for the technical jobs. However, there is an opportunity in other areas. “There are instances where they may need to have a casting call for 2000 extras in a movie that pays $100 per day. This is a chance for a retired person or a young student who is out of school for the summer,” Griffin said. “That is money that is infused in the community that wasn’t there before.”

Mary Nell Webb, Director, of the Western North Carolina Regional Film Commission, in Fletcher, explained that the film commission landscape is drastically shifting throughout the United States. “The playing field has changed. One of the growing obstacles for many film commissions is being able to compete for these projects,” she said. “Oftentimes, we can’t compete with the millions of dollars of incentives that countries like Canada, and others worldwide can offer.”

Richard Fender, Executive Director of the Region D Council of Governments, an EDA funded district in Boone, North Carolina, explained that his organization is involved in a network that helps the Western Regional Film Commission attract movies to the area. The economic development impact has been very positive. Fender commented, “We want to be in a position to attract the film industry to our area.” He added, “Our role, as indirect as it may be, provides a good link in the network between the Western North Carolina Film Commission, film companies and local governments. We know our counties well, and if the filmmakers are looking for a specific attribute or setting for their movie, we have people who can provide assistance in helping the film commission locate what they are looking for.”

Webb added, “It is a gamble in trying to recruit these film companies to come to our small towns,” she said. “But we’ve also been very lucky with the type of professionals who come into town to work. It has also brought a great deal of free publicity which is always positive for the small arena in which we operate.”

For More Information Contact:

• Barbara Bryant of the Humboldt Commission at 800-338-7352 or visit www.filmhumboldt.org;
• Richard Fender of the Region D COG at 828/265-5434 or email dfender@regiond.org;
• Johnny Griffin of the Wilmington Regional Film Commission at 910-343-3456; or commish@wilmington-film.com;
• Randy Schumacher of the North Carolina Film Commission at 919/733-9900 or rschumacher@nccommerce.com;
• Mary Nell Webb of the Western North Carolina Regional Film Commission at 828/687-7234 or email film@awnc.org.

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