Local Businesses Are Struggling Amid Writers’ Strike [Exclusive]
The WGA has been on a labor strike for nearly four months, and it has created a rippling effect on the local economy.
From those counting on the industry for survival to boutique shops, animal trainers, and artisan communities, small businesses have taken the greatest hit since the pandemic.
“It’s (business) never been this slow,” local artisan Amy Cloke Spadoni told us. “I had more business during Covid than I have this summer.”
Amy owns the long-celebrated shop, Twelve & Five, which has been serving the Los Angeles area for more than ten years. She sells homemade products from home decor, wreaths, and jewelry, to wood wine boxes and more. Most of her customers came through word of mouth. She was nominated for top female designer last year in Elite Magazine under the “40 and under” category.
“My local makers are feeling it as well,” she told us that the artisan communities are taking a big hit as a whole. “We were just talking about how low our sales are and how the community is taking a massive hit.”
“The average compensation in the industry is considerably higher than the average earner,” according to Lee Ohanian, an economics professor at the University of California. There are around 700,000 people employed in entertainment, making up 5% of California jobs, as reported by CNBC. And those who work in the industry account for 20% of the LA-area income.
However, those on strike are suffering from economic anxiety and are even afraid to check their bank accounts. “I’m at the level of just trying not to think about it,” SAG-AFTRA member April Rock to LAist.
Those in the related field and have customer bases in entertainment are in the direct zone of impact.
Renee, the owner of Earthbaby in Sherman Oaks and Santa Clarita, told us that about 80% of her customer base is entertainment, and businesses like hers are directly impacted, “since the writers’ strike, we are down 70%.”
Alec Torres owns The Mannered Mutt, a dog training business. She said that 30% of her client base is in the entertainment industry and 20% are in related fields. “We do a lot of support for the people in the entertainment industry. When people lose funding and want to cut back on expenses, they just have to YouTube and look for a trainer to tell them what to do.”
Since the strike, she has seen a “pretty steep decline in bookings,” while “a steep incline” is observed through her work at Animal Foster Network, a nonprofit animal rescue group, “with people abandoning their dogs and pets in desert areas.”
Alec has been cutting back on expenses and relying on donations to keep the nonprofit project going. She’s been making changes to her service and planning for the future. “Things will get better because they always do and they have in the past,” she said. “I’ll be ready for the onslaught when things get back to me.”
However, not all business can go back to the way it was when the strike eventually came to an end. For some, the ongoing economic hardship forced them to seek jobs elsewhere and even switch to entirely different professions. Many are not returning to the film industry.
In the 2008 strike, 37,700 jobs were lost. The California economy suffered from a $2.1 billion blow. California is estimated to have lost $3 billion already, according to Todd Homes, a professor at Cal State Northridge. His estimate was based on data collected from the 2008 strike. In reality, the number is likely higher with the additional SAG-AFTRA members joining the picket lines.
“I worry about the younger couples who didn’t see this coming,” said Amy. In the past four months, she has been creating new products, trying new ideas, and researching new tools, trying to keep things afloat.
Renee lost her main shop in a neighborhood restaurant fire. The shop has served the community for 12 years. At another time, both businesses might be able to bounce back, but the ongoing hardship has made it seem impossible. “The future is actually unknown for both of us since we don’t know what’s going to happen with our real jobs, so we' are just going to continue to do side jobs and cut where we can and pray, and hope for the best,” said Renee.
The Writers Guild of America met with key CEOs on Tuesday to discuss the AMPTP’s latest offer on Aug. 11. However, the meeting ended with both sides unable to agree on several points across the board. So far, there is no future meeting scheduled.
