The Local Economic Benefits of Film and TV Studios in West London

A new report prepared by Nordicity and Saffery LLP demonstrates that film and TV production studios in West London not only generate significant benefits for the UK economy, but also for local supply chain businesses in West London (Barnet, Brent, Ealing, Hammersmith and Fulham, Harrow, Hillingdon and Hounslow).

The new report, Analysis of the Local Economic Benefits of Film and TV Studios in West London, was commissioned by Hounslow Borough Council on behalf of the Creative Enterprise Zone and Screen Capital West, with support from the office of the Mayor of London.

The report’s key findings are summarised here and include:

• A 100,000 sq ft film and TV stage generates between £60 million and £80 million in total annual production expenditures
• The majority (ie 65% of total production expenditures) of the economic impact of film and TV production is linked to the employment of creative talent (ie writers, producers, directors and lead actors), supporting cast and extras
• As home to the largest concentration of film and TV workers in the UK and Greater London for that matter, West London is already well-positioned to benefit from the economic impact associated with the talent, extras and crew employed on film and TV productions at the studios located across West London
• Supply chain purchases typically account for approximately 25% of a film and TV production budget, with visual effects (VFX) and post-production accounting for 10% – although it can be much higher for some films
• A film and TV project’s supply chain expenditures are distributed across a wide range of industries: from building materials to security services, to studio hire, to equipment hire to catering
• West London is also well-positioned to benefit from these supply chain expenditures, with six film studios and 65 supply chain companies, including Metro Rigging in Hangar Lane and Panavision in Park Royal, catering companies such as Red Hot Box and Gav’s Kitchen in Wembley, and props and furniture companies such as Superhire in Park Royal and Creatures Inc. Ltd in North Wembley
• Given the depth and breadth of the film and TV production supply chain in West London, a 100,000 sq ft stage is likely to generate just over £15 million in local supply chain expenditures on an annual basis, or 75% of the estimated £20 million in supply chain purchases on a £80 million production budget
• Local supply chain spending, in turn, generates £9 million in local gross value added (GVA) and over 125 full-time equivalent (FTE) jobs, across the West London boroughs

Dustin Chodorowicz, Partner, Nordicity, noted:

“Film and TV studios are not only important hubs for employment but also stimulate demand for a wide range of supplies and services, ranging from building supplies, equipment hire, props and special effects supplies, to food catering. This research shows that as much as 75% of the spending on these supplies at West London studios are procured locally within the West London boroughs.”

Stephen Bristow, partner in the media and entertainment team at Saffery, said:

“The UK’s film and high end TV industry is a blockbuster economic story, delivering direct investment at a national and local level, creating jobs and providing work to associated sectors like hospitality, accommodation and food providers. This is underpinned, and fuelled by, the reformed audio-visual expenditure credits, which build on the success of its precursor tax relief schemes. For instance, as illustrated in our report, since the creation of the HETV Tax Relief annual spending on HETV production in the UK increased five-fold from £415 million to over £2.2 billion.

“West London is ideally placed to capitalise on this growth trajectory, which shows no signs of slowing down.

 “We were very pleased to work with Nordicity, West London Business and its partners to shine a spotlight on the economic opportunity for the region and the dynamic business community which contributes right across the production supply chain.”