There’s a Credit Crunch, Not a Creative Crunch
In these tough financial times, many companies have suffered, and others have managed to forge ahead despite obstacles. In what ways have smaller studios and freelancers coped with the economic downturn? I interviewed several UK-based people within the motion industry to determine how the credit crunch has affected them and their creative business, and more importantly, how optimistic they are for the future.
NATHAN LAUD
Various works by Squash and Stretch
Squash and Stretch is in it’s 2nd year of trading focusing on 3d animation, taking on freelancers as and when needed. I spoke with Animation Director Nathan Laud on how his company has performed during the recession.
Have you noticed a significant downturn in the last 12 months?
No not really. I have quiet periods and extremely busy periods. If anything the quantity of work has increased. This is probably due to the fact I’m only in my second year of trading and the first year took a little while to get going.
Have you noticed a change in clients expectations, attitudes and budgets?
If I compare them to budgets for work when I was at a larger company then yes, but then that is why I set up on my own. Even before the economic downturn I could see that people wanted more for their money and using big post production companies was becoming too expensive. By setting up on my own without any of the overheads it has allowed me to produce the same level of work but for about half the rate. They don’t get to come and sit in a nice office but they are happy to sacrifice this.
Are you optimistic that the next 12 months will see an upturn in business?
Yes. I feel I’m ideally positioned to take advantage of the fact that budgets have been falling. More and more clients are realising that they can still get the high quality from a skilled individual.
DEBBIE DARBY
Debbie Darby has been a Producer for over 20 years working for companies such as Lambie-Nairn and Smoke and Mirrors. She is now a Freelance Producer at COI.
Have you noticed a significant downturn in the last 12 months?
Yes, Work slowed down for me in March 2009
What cost saving measures have you introduced, if any?
Business life – to cut down on travel costs I only come into London when there’s more than one meeting/production to be done. Personal life – Shopping at Asda rather than Sainsburys (!)
Have you noticed a change in clients expectations, attitudes and budgets?
Clients want it all with a much shorter schedule and for much less money than before.
Have you noticed an increase in competition? Are your competitors reducing rates to win business?
I guess all producer’s fees are dropping, there are lots of people out there ready to work for a lower daily rate.
JOHN PENNEY
John Penney is Creative Director at Writemedia employing 10 people working in web design, flash animation and motion graphics.
Has the type of work you’ve taken on changed in any way, if so how?
We take on less large scale projects with several smaller, quick turnaround jobs replacing them.
Have you noticed a change in clients expectations, attitudes and budgets?
Budgets have definitely been trimmed so it’s a case of what you can do in that time. As we don’t want the quality of work to suffer, we ultimately end up spending more time than quoted to get the job done to keep clients happy and the standard of work high.
Have you noticed an increase in competition? Are your competitors reducing rates to win business and are you, in turn, expected to follow suit?
Competitors are increasing their efforts but by keeping our working relationships on a good basis we hope this (combined with a high standard of work and competitive prices) will sway them to stay.
Are you optimistic that the next 12 months will see an upturn in business?
Definitely optimistic. You have to be in this industry!
STUART SIMPSON
Various works by Stuart Simpson
Stuart Simpson is a freelance designer / animator based in London, UK.
Have you noticed a significant downturn in the last 12 months? Within that period have you noticed a particular time when business was slow or picking up?
The last 6 months of 2008 were non-stop, and in comparison I had always expected a quiet period at the start of this year. It extended slightly longer than I’d thought and work didn’t really start picking up again until the end of February and beginning of March.
Has the type of work you’ve taken on changed in any way, if so how?
It’s become more varied. A large part of last year was spent on DVD menu work. Which is surprising given the lower budgets compared to a few years ago. The quieter periods for in house work have given me the time to focus on operating as an independent studio. I can take on multiple projects and really devote quality time to them. The Hotel Trubble title sequence for the BBC and advertising shorts for an American insurance firm were two of the highlights.
Have you noticed a change in clients expectations, attitudes and budgets?
Expectations are always high! I think there is a tendancy to negotiate fees more. It depends on the nature of the client, B2B and corporate work seems more financially stable at the moment.
Have you noticed an increase in competition? Are your competitors reducing rates to win business and are you, in turn, expected to follow suit?
It is very competative at the moment. I’ve seen a lot of new showreels out there. The problem is motion graphics covers a large area of technical knowledge and design creativity. The first hurdle is – do you meet the clients needs? The most important question for the client is can you do the job? and are you available? Once on that shortlist it might become a rates race but I think it usually gets decided before it reaches that stage.
Are you optimistic that the next 12 months will see an upturn in business?
I’m a glass half full kind of guy! I have goals in mind and so far things are on track. It’s well known the industry is evolving. I think it might be tough times for large companies, but I think it can only give people like myself exciting opportunities.
CLOSING
After talking with Nathan, Debbie, John and Stuart, it’s clear that they have all embraced this downturn and are trying to do something positive about it. We’ve probably all been affected by the recession in one way or another, and know someone who has been laid off. We can either sit back and hope it will ride out, or positively try to make a change and look for new opportunities.
When asked what he thought about the recession, fashion designer John Galliano simply said, “There is a credit crunch, not a creative crunch. It’s our job to make people dream, and to provide the value in quality, cut, and imagination.” Words wisely spoken.
We’d love to hear about how your creative business has coped with the recession.
Faye Brown is a motion graphics designer based in Soho, London. She currently works at Prime Focus London. In her spare time she is a keen photographer and loves traveling to new places with the Lomo camera in hand.
No Comments3 Reactions