It can be a vicious circle. Just as a location starts to find its feet in the international commercial production service industry, making sure it meets the needs of potential foreign clients by ramping up its infrastructure, the fickle (and thrifty) winds of change blow the doors open to a new, emerging market. And over the last year in particular, with the American dollar's exchange rate bobbing and weaving like a prizefighter seconds away from face-planting on the canvas, some experienced and slightly more expensive production service markets have been feeling the pinch. But, as we found out when polling service companies in some of the top global markets, there's plenty of global business to go around, and a healthy amount of locales ready to emerge as cost-efficient, versatile hot spots. Here's a summary of the production services climate in four of the top service markets, as seen through the eyes of those on the front lines.

SOUTH AFRICA
With the prime period for a South African commercial shoot being between its spring (from September to November) and its autumn (from March to May), service companies we polled in Johannesburg and Cape Town report that business is humming along during this summer, with North American and European clients in need of sunny locales. But the instability of the American greenback is giving some US clients cause for pause, according to Dale Kushner, president of Africa Film Services (AFS). As a company that services its fair share of American productions (it has an office in Los Angeles, making it a convenient logistical choice for American prodcos), Kushner notes that their last commercial season extended through the winter months of June to August, into October, resulting in a quieter quarter that lasted into December. "I think it definitely relates to the exchange rate, as at that time the dollar definitely decreased," he says. "There also seemed to be a lot less board flow... Most of our clients are American so when there are hardships in America, we definitely see it.".

Di Davis, co-founder and executive producer at Cape Town's The Big Picture Company, says that while service work for Canadian productions is strong, it's the European market, particularly the Scandinavian and British jobs, that keeps them busiest. "It's the same time zone and the rand is still pretty constant in being weak against the pound and the euro, so it's still incredibly good value for money," she says. "Going to South America is a hell of a long trip for the Europeans, and a lot of them are saying they prefer to come back to South Africa because it's a very reliable service market." Russian work is also, interestingly, on the rise. But as for wooing US work, Davis cites the variety of locations that US prodcos have at their disposal within their own country as well as American clients' lack of knowledge about the region as stumbling blocks. "In terms of commercials, it really is quite a thing to convince a client to come to Africa, especially if they haven't been here before," she says. "I've been doing this for 20 years but I'm always amazed when people say, 'Oh my God, I had no idea Cape Town looked like this.'"

But as with any production service market, bottom line costs combined with efficiency and variety tend to seal the deal. Both Davis and Kushner point to a recent initiative in Cape Town that has waived location fees for any city-owned, public property as further evidence of the region's film-friendly qualities. And while South America has eclipsed South Africa in terms of grabbing American service work, and emerging new markets may offer up cheaper solutions on paper, putting it all into practice can tell a different tale. "We do get a lot of clients coming back to us saying 'We know we can do this job cheaper in Chile but we're really scared about the production support.' They're not prepared to take that chance." says Kushner. "They know they're going to get the same as American or better service in South Africa - reliable crews and good equipment."

GOOD TO KNOW
Exchange rate: 1 USD = 6.94 ZAR (Rand)
Hot locales: An hour from Cape Town by plane and five hours by car, Durban's art deco buildings could make it a shoe-in for Miami. An hour outside of Durban, there are the England-esque, rolling green hills of the Natal Midlands.

Recent spots shot: Old Spice campaign (agency: Wieden + Kennedy, Amsterdam; prodco: Rokkit, London; services: Stillking, Cape Town); Citroen "Runner" (agency: Euro RSCG, Paris; prodco: Spy Films, Toronto/Hamster Pub, Paris; services: The Big Picture Company, Cape Town).

Africa Film Services http://www.afsproductions.com
The Big Picture Company http://www.thebigpicture.co.za

SOUTH AMERICA
The recently-released Association of Independent Commercial Producers (AICP) survey for US commercial production showed that in 2006, the number of American spots shooting in Central and South America ballooned to 26% of all non-US shoots. And while the companies we polled that are active throughout South America say business is still exceptionally strong in certain areas, exchange rates, improving infrastructures and stiff competition from emerging markets within the region are all having an impact on where the jobs are going, and who's taking them there.

"After you've produced many big jobs, you attain maturity," says Georgos Nicolaides, executive producer at Benito Cine, Buenos Aires. "Here, we know what's doable in Buenos Aires and what's not, so we don't need to pretend. We can say no, and it's okay. But when you are just beginning, you don't really know if you are prepared or not, so you say yes [to anything]."

The maturity that Nicolaides refers to, reflected in the experience of the producers and crews, keeps the Global Production Network-repped company extremely busy with American jobs (they recently completed work on Rupert Sanders' contribution to the new Monster.com campaign - see pg. 26). "There are two kinds of production companies here - the ones that specialize in [serving] the American market and the ones that focus on the European market," he says. "The Americans want to be very organized from the start, while the Europeans can be discovering something different every day."

But the infrastructure's maturity can result in higher costs compared with emerging markets such as Uruguay, and, according to EPs from other markets such as Brazil, packed schedules that can make it hard for some visiting productions to get prime locations and crews.

"In Uruguay, if they're working on three or four productions at the same time, they have to bring crew and equipment in from Argentina," explains Anna Martinez, international market EP for Bossa Nova Films. Based in Brazil, they are opening an office in Buenos Aires in 2008, and partnering with companies in Chile and Uruguay. "With Argentina being so busy, it's hard to find crew that's available. You have to be really aware of all of that."

"There are always those that look for the absolute lowest possible price," offers Philip Bolus, EP in the Buenos Aires office of Goodgate Productions. "Often, these cost savings come with hidden caveats of weaker local infrastuctures, less versatile talent pools, et cetera.

"Sure, people are always on the lookout for the best deal. But at the end of the day, it is usually the tried service centers that can pull the rabbits out of hats."

As for Brazil, its production service market has built up a trusted infrastructure used often by American and international prodcos. But in contrast to Argentina's peso, which remains at an American production-friendly 3:1 ratio with the USD, the real is hovering just below 2:1. "This is the reality we have to deal with right now," says Martinez. "I can't lie to my clients and say that we can do something for a certain price in Brazil because we can't. Production service is a business that works on trust. Now I have to be thinking globally in order to stay working with my clients."

Brazil's o2 Filmes is also continuing to extend its reach. After conducting extensive research into other Latin American markets and existing production infrastructures, o2 opted to not move into the crammed Argentine scene, favoring setting up an office in Bogota instead.

"The place where we saw a great production structure was in Colombia," says EP Bianca Corona. "Last year they made six features and this year they already have six in production and they want to get to 12." She also says there's a "huge" rental house and a film lab will be opening before the end of the year.

Meanwhile, the Brazilian service scene is still quite a going concern for spots and music videos, with its trusted crews and diverse locations favored by American and British prodcos, as well as a growing number of Europeans. And, in large part due to the country's multiracial population, both Martinez and o2 international account exec Anita Imperatore say business from Asia is ramping up. "We've been working a lot for the Asian market, especially for Japan, Korea and Singapore," says Imperatore. "They are crossing the globe to shoot with us!"

GOOD TO KNOW
Exchange rate: 1 USD = 3.17 pesos (Argentina) or 1.77 reais (Brazil)

Recent spots shot: Argentina - Nike+ "Long Time Coming" (agency: Crispin Porter + Bogusky, Miami; prodco: HSI, LA; services: Film Planet, Argentina); Guinness "Tipping Point" (agency: AMV.BBDO, London; prodco: MJZ, London; services: Pioneer Productions, Buenos Aires); Brazil - Will.I.Am, "I Got It From My Mama" (prodco: Believe Media, LA; services: o2 Filmes, São Paulo.)

Benito Cine http://www.benitocine.com
Bossa Nova Films http://www.bossanovafilms.com.br
Goodgate Productions http://www.goodgate.tv

o2 Filmes http://www.o2filmes.com

CANADA
According to the aforementioned AICP survey for commercial production in 2006, Canada is still the top spot outside of the US for American ad shoots, with 36% of all foreign shoot days taking place north of the 49th. But when the Canadian Loonie hit parity with the US dollar in the fall of '07, one of the chief reasons for that status was instantly placed under the microscope. Combine the current exchange rate with a growing number of US states stepping up their commercial production tax incentive programs, and it's not surprising that American productions may have added reason to either stay closer to home, or head to cheaper service capitals.

"I'd have to say overall, yes, it has had an effect," says Eva Preger, executive producer at Toronto prodco Soft Citizen, which services a sizable number of US jobs in assorted Canadian locations. "But I've been quite surprised by the amount we have been able to service." She cites the main draws as twofold: a breadth of diverse urban and natural locations and "really good talent."

It's a sentiment echoed by Karen Silver, president and executive producer at Treehouse North, one of Canada's longest-running production service companies with offices in Toronto and Vancouver. Even with the dollar parity situation, Silver says she had a "great year" in 2007. It didn't hurt that much of the business came from England and Europe, as the Canadian dollar is still favourable against the euro and the pound. "From my perspective, a lot of what we get is location-driven, or we have something they don't," she says. "What I saw a lot of in bidding for November and December were snow jobs - we had it, they didn't." But that's not to say all the American service jobs that didn't require wintry climes made their way to South America. "There's a huge amount of people going to South America, and everyone knows that," says Silver. "But some clients don't want to leave the continent."

Both Silver and Preger note that with Toronto in particular, the city takes great care to present itself as filming-friendly. "Within five business days there's a lot you can do here," says Silver. "So even though you may need three weeks to get a helicopter permit to fly through the city, sometimes you can get that through quicker."

Under the specter of an unstable American economy, there's a growing call among Canadian film commissions to make commercial production in Canada a more attractive option for foreigners. Proposals have called for national and provincial tax credits for spot production. "We've had them in features for so long, and that would be a big deal for us," says Preger.

GOOD TO KNOW
Exchange rate: 1 USD = 1.04 CDN

Hot new locale: Maybe we should rephrase that as "cool" new locale. Soft Citizen's Preger wants to get more work into Canada's northern-most regions, the Yukon and Northwest Territories. "It's remote and it can be expensive, but it's magical."

Recent spots shot: JC Penney campaign (agency: Saatchi & Saatchi, NY; prodco: Furlined, Santa Monica; services: Soft Citizen, Toronto); Hiscox "Storms" (agency: Inferno, London; prodco: RSA Films, London; services: Treehouse North, Toronto); Yellow Tail campaign (agency: Cramer Krasselt/Hampel Stefanides, NY; prodco: Saville, NY; services: Treehouse North, Toronto).

Dawson Productions http://www.dawson.cz
Stillking http://www.stillking.com