What the Global Economy Has to Do With Your Next Shoot
How production companies are adapting—and even thriving—in an era of uncertainty.
If you've felt a shift in how production work is being scoped, bid, or budgeted lately, you're not alone. The ripple effects of a volatile global economy are reaching creative production, and the team at SYZYGY has some thoughts on what we’re seeing across the board. From navigating paused jobs and bidding smarter to new ways of thinking about cash flow, here’s how financial shifts are reshaping production—and what savvy teams are doing to stay ahead.
1. When in Doubt, Hit Pause (Then Pivot)
It's often the first move: freeze. "Especially when tariffs or inflation news hits, clients pause, jobs get put on hold, and promising boards go quiet," said Tyler Burr. "It's kind of a reflex to wait and see what happens before making any big moves." That hesitation, while nothing new, is happening more frequently as brands recalibrate their priorities. But it’s also creating space for thoughtful pivots, where producers and clients can reevaluate needs, reset scopes, and often come back with sharper strategies. And as we’ve seen through global ups-and-downs of the past 30 years, production always bounces back – but it may look slightly different.
2. Foreign Exchange Isn't Just a Line Item Anymore
One central area of concern? Exchange rates. "There's way more conversation now around managing currency risk," said Chris Walters. That's especially true for clients considering international shoots. More are now using tools like 'forwards'—committing to purchasing currency to lock in an advantageous exchange rate ahead of time. “It’s all about removing friction and enabling better planning,” Walters noted.
3. The Domestic vs. Foreign Production Dilemma
There's growing tension between the cost of shooting locally and the uncertainty of going abroad. On one hand, U.S. shoots (especially in California) come with labor law challenges and higher costs. Conversely, foreign productions bring more financial risk due to fluctuating currencies and possible new tariffs. "Everyone's juggling competing pressures," said Walters. "It's a case-by-case puzzle every time."
4. Budgets Aren't Shifting—Yet
Most clients aren’t necessarily overhauling their budgets, but they are spending more intentionally. "I think we're still in that initial contraction mode," said Burr. Though bids may be more scrutinized, especially on items like travel and wrap days, the pushback is still fairly specific.
5. Cash Flow is Top of Mind
Between longer payment terms from agencies and less access to affordable credit, liquidity is more crucial than ever. "We're not seeing a formal shift in how clients handle vendor payments," said Walters. "But we are seeing everyone trying their best to stay agile." For those with access to credit lines, it’s a vital tool. For others, it's about careful planning and knowing where to build flexibility to balance preserving vendor relationships with navigating collections issues.
6. Virtual Production: Not a Quick Fix, But a Long Game
Virtual production and AI tools are on the radar, but they’re not the budget saviors some imagine. “It takes real investment,” Burr said. "But the potential is there—and the conversations we’re having now are setting the stage for smarter implementation down the line."
7. The Industry Is Splintering—And Fast
Production is evolving into two distinct modes: high-end, talent-driven work with traditional margins, and leaner, service-based models where flexibility is key. “We’re seeing a lot more direct-to-brand projects with razor-thin markups,” Burr noted. Though the markup in that space is perhaps less than 20%, there are also fewer costs the production company needs to incur to perform the work (like profit share for directors or sales commissions), which helps to recuperate some bottom line. It’s pushing companies to define their lane and double down on what makes them distinct.
8. Forecasting meets Flexibility
Syzygy has responded to the evolving industry by customizing its reporting and forecasting to match the times. "We're doing everything from macro-level cash analysis to weekly forecasting, depending on what each client needs," said Walters. Clients also lean on them for big-picture reassurance: "Everyone wants to know if they're the only ones feeling the dip," she added. We're in touch with 30+ companies—this is across the board."
Burr echoed the importance of adapting on a client-by-client basis. "We've made our pricing model flexible because what one company needs right now might be totally different from the next. Flexibility is everything."
9. The Advice They're Giving Most Often
“Leave cash in your business,” said Walters. Burr added: “And be strategic about what work you chase. Make sure the job is actually winnable and that the juice will be worth the squeeze.” Pitching is more expensive now—and more time-consuming. However, a focused, thoughtful approach can lead to a higher overall win rate and lower pitching costs.
The Bottom Line
Economic volatility isn’t going anywhere, but neither is production. It’s evolving. The most resilient companies are staying nimble, using this moment to refine their models and focusing on sustainable growth over quick wins.
In a market defined by uncertainty, confidence comes from clarity and knowing how to navigate the moment, not just survive it. The good news? That’s a muscle this industry knows how to flex.