Opinion
Marvel's Exit Should Alarm the U.S. — We're Pricing Ourselves Out of Our Own Industry
By John Taylor
When Marvel Studios quietly pulled its upcoming productions out of Georgia in favor of facilities in the United Kingdom and Europe, there were no press tours, no statements to fans, and no industry fanfare. But for those paying attention, the move was unmistakably loud.
For more than a decade, Marvel helped transform Georgia into a modern production hub. With generous tax incentives, sprawling soundstage complexes like Trilith Studios, and a deep bench of skilled crew, the state became the staging ground for global blockbusters. But now, Marvel — arguably the most commercially successful entertainment studio of the modern era — is walking away. Not because of politics. Not because of creative differences. Because it’s too expensive to stay.
The shift reflects a larger, more uncomfortable truth: America may no longer be financially competitive in the business of making movies and television.
The True Cost of Staying Put
A production budget is not just about cameras and talent. It’s about insurance. It’s about healthcare. It’s about overtime rules, union obligations, real estate, regulatory permitting, and complex labor contracts. And the cost of all of it in the United States has reached a tipping point.
According to a 2022 report by the Los Angeles County Economic Development Corporation, California lost nearly $8 billion in economic activity, over 28,000 jobs, and approximately $350 million in tax revenue between 2015 and 2020 because productions opted to shoot elsewhere. (LA Times)
And it’s not just California. New York, Georgia, and Louisiana — all states that once courted Hollywood with deep incentives — are seeing productions gradually drift away.
Internationally, the alternatives are too compelling. In the United Kingdom, employers aren’t responsible for healthcare — it’s publicly provided. In Hungary and Ireland, labor is cheaper, incentives are deeper, and the regulatory overhead is lighter. In Canada, a favorable exchange rate adds to already generous federal and provincial subsidies.
“Lower fixed costs on labor are a much greater incentive than tax credits they don’t use,” one analysis noted in Reason Magazine. (Reason)
The Vanishing Local Economy
When a blockbuster moves overseas, it doesn’t just leave behind film crews. It takes entire micro-economies with it.
Hotels lose month-long bookings. Local caterers lose contracts. Construction workers, electricians, drivers, hair stylists, carpenters — all lose steady income. Cities lose permit fees. States lose tax revenue. Even local restaurants and dry cleaners feel the vacuum.
“Runaway production has cost LA County 9,000 jobs since 2007,” according to LAist. (LAist)
In a moment when policymakers talk about restoring middle-class jobs and investing in the creative economy, these quiet losses cut deep.
From my own experience working with production companies in South Korea, Germany, and Latin America, the message is always the same: the U.S. is simply too expensive for regular production. When they ask me if we have clients willing to shoot in Europe or abroad, I usually respond: “If we can achieve the same result for less, why wouldn’t we?”
In many of these countries, crews are equally skilled, infrastructure is modern, and the approach is leaner. They’ve had decades of experience stretching budgets — and still delivering high-end results. I've seen teams pull off entire sets with a white bedsheet and smart lighting. It’s not corner-cutting. It’s efficiency.
This Isn’t Just Cultural — It’s Economic
The migration of film production mirrors what we’ve seen in manufacturing, textiles, and even tech. The creative product may remain American — the IP, the storylines, the branding — but the physical labor and financial benefit are increasingly offshore.
It’s not hard to draw comparisons with Detroit. In 2009, when General Motors and Chrysler faced bankruptcy, the federal government acted — not simply to save two companies, but to prevent a broader collapse of the automotive ecosystem. Job loss estimates reached 1.5 million, and GDP risk estimates were in the hundreds of billions. (Center for Automotive Research)
Hollywood may not employ as many people directly, but it supports a lattice of jobs across multiple sectors — from real estate to logistics. Letting that system atrophy is not just a cultural concern. It’s a matter of economic erosion.
Tax Credits Aren’t the Fix
For years, states tried to stem the tide with tax incentives. Georgia offered 30%. New York offered up to 25%. But those incentives, while useful, are increasingly insufficient. International competitors are not only offering equal or greater benefits, they also combine them with lower costs of operation and less red tape.
“The industry risks becoming a shell of its former self, exporting creative work while importing production cost-cutting from abroad,” wrote The Times UK in an editorial. (The Times)
If we want to remain competitive, we need more than credits. We need to rethink how much it costs to make creative work here. That means healthcare reform. It means better labor flexibility without sacrificing protections. It means investing in crew development and soundstage infrastructure across the country — not just in the coastal strongholds.
Marvel Isn’t an Outlier — It’s a Forecast
When a company like Marvel chooses to leave, it’s not just an outlier. It’s a forecast. If the most bankable studio in the world can’t justify shooting in the United States, who else can?
The U.S. still holds the cultural high ground. Our stories dominate the global box office. But that advantage is not permanent. And if we continue pricing ourselves out of our own industry, we’ll be left holding the intellectual property — while someone else builds the actual future.
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John Taylor is a Commercial Producer based in New York City. He has worked across branded entertainment, global production, and commercial strategy for over a decade, collaborating with clients and crews in the U.S., Europe, South Korea, and Latin America.