LOS ANGELES

If the working girls along the Boulevard are any indication, things are picking up in LA. For the first time since Sept. 11 there seems to be less hesitation on the part of clients and agencies to move forward.

"November and December were so bad that any increase, however small it may be, is significant," comments one exec producer. "Things have definitely picked up, but the question everyone is asking themselves is will it last?" adds another.

The same cannot be said for the San Francisco market, which took a beating when TBWA/Chiat/Day lost the Levi's account. Levi's claims it is consolidating its creative by moving the North American account to BBH, New York, as part of its global branding strategy. The $60 million dollar shift may cost Chiat its San Francisco office.

And yet the state of the state hasn't stopped many commercial producers from hitting the slopes in Park City. Given the last six months, they're used to navigating rough terrain. The commercial production community remains upbeat and enthusiastic about the coming year, choosing to see the glass as half full. Perhaps it's what's in the glass that counts.

BOARDFLOW: 5/10

TORONTO

Toronto board flow remained steady if not exactly "off da hook."

Some companies reported a heavy influx of new commercial projects riding in with the new year, while others were not overly excited with the volume of available scripts. Reported boards included lottery, retail, telecom, food, packaged good, beer, tourism, car and confectionery products. Several projects on the make required warm weather locations.

"It's damn busy over here. The sphincter muscles controlling board flow over the last quarter have opened up and we have started off really well this year," says one producer, while another remarks:

"We are quoting and trying to get work like everyone else. Board flow is better but there is so much competition because the US economy has not picked up to its regular level. Competition has doubled in this city."

With this competition continues the practice of lowballing, essentially taking a loss on a project in order to win jobs. The trend has become so common that industry association CPAT recently circulated a newsletter to production companies condemning the practice. Many agree that it hurts the business for many reasons, but that it stems from a variety sources. Keeping busy is of course the prime driver behind lowballing, but maintaining relationships with foreign directors seems another common root of the problem.

"It's a fool's game. It's miserable and unprofessional when people buy jobs, leading to a downward spiral. Clients will not get the same quality because things cost what they cost. Our business ends up feeling like it's a game and not a business," says one exec. "In the US it's more of a business."

BOARDFLOW: 6/10

NEW YORK

The return to semi-normalcy reported by many production companies in December has, to some extent, continued into the beginning of 2002.