Hollywood’s Hollow Core: Is L.A. the Next Detroit?

elderly man crossing street in city in winter

It used to be that walking through the backlots of a major studio felt like entering a city that never slept: craft services buzzing, grips running cable, actors crossing paths with gaffers and execs. But according to Gladiator II screenwriter David Scarpa, that energy is gone. “It feels empty,” he says of today’s backlots. “You definitely feel the absence of life.”

hollywood sign

Film Production in Los Angeles Hits Historic Lows

FilmLA just reported the worst on-location filming numbers Los Angeles has seen in over 30 years, excluding the pandemic shutdown. Only 20% of North American productions now shoot in California. The other 80%? Scattered across more affordable, incentive-heavy destinations like New York, Georgia, Canada, and even Mexico.

Why Are Film Productions Leaving California?

The short answer: tax incentives. While California has coasted on its legacy, other regions have aggressively courted filmmakers. Georgia and New York offer steep credits. Texas just doubled its incentive fund. Netflix committed $1 billion to produce content in Mexico. Even Australia, Eastern Europe, and Canada continue gaining ground with filmmaker-friendly policies.

The Cost of Inaction for Hollywood

Despite California’s $4.1 trillion GDP, the entertainment industry is slipping. Consider the numbers:

  • Shoot days down 22% year-over-year
  • TV pilots at record lows
  • Stage occupancy down to 63%
  • Music scoring sessions down from 127 (2022) to just 11 (so far this year)

Below-the-line workers (grips, PAs, costume designers, and set decorators) are leaving. The jobs just aren’t here.

wide angle photography of city near body of water

Could Hollywood Go the Way of Detroit?

FilmLA’s Philip Sokoloski didn’t mince words: “Detroit offers an example of what happens when everything is in your hands and you fail to work to keep it.” The comparison may sound dramatic, but it’s not unfounded. Like Detroit, L.A. risks losing the very workers that made it world-class.

Can Tax Credits Save California’s Film Industry?

There’s a push to stop the bleeding. Two bills are currently working through the state legislature that would more than double California’s film tax credit, from $330 million to $750 million annually. Grassroots coalitions like Stay in LA are gaining traction, urging lawmakers to act before it’s too late.

No, Jon Voight Won’t Save Us

Trump’s plan to revive the film industry? Appointing Mel Gibson, Sylvester Stallone, and Jon Voight as “special ambassadors.” Industry reaction has been… less than optimistic. Actor Mary Flynn said it best: “It’s not a basket I’m putting my eggs in.”

The reality is, Hollywood doesn’t need nostalgia, it needs infrastructure, incentives, and leadership that understands today’s global production economy.

What Filmmakers Should Do Now

For indie filmmakers, this moment is a business lesson disguised as an industry trend. Don’t assume Los Angeles is the only place to build a career. Learn how tax credits work. Follow where the opportunity goes. Whether you’re in New Mexico, British Columbia, or Bratislava, make your movie, but make it sustainably.


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