BC Business
The American-owned visual effects studio has moved its Vancouver branch to a new, carbon-neutral location in the city. So what does it mean for B.C.'s film industry?
The film industry is a staple of B.C.’s economy, generating $2 billion in GDP in 2023 (down from 2022’s contribution of $2.7 billion, but hey, there was a strike).
It’s not just live action sets that play a vital role in employing tens of thousands in the province, it’s the post-production and behind-the-scenes work that’s crucial too. That’s everyone from the people editing a film to coordinating production schedules to wielding computer power to make your favourite superhero fly (when really they’re in a harness in front of a green screen).
Industrial Light & Magic (ILM), one such visual effects studio first founded by George Lucas (yes, the Star Wars George Lucas), just moved to a new studio space in Vancouver at The Stack, Canada’s first zero carbon building.
“It’s much more than an office move,” says Spencer Kent, Executive in Charge, San Francisco & Vancouver Studios. The investment in building a customized space to house the company’s largest location with nearly 1000 employees could be seen to signify American/Disney-owned ILM’s continued commitment to staying in B.C.
And it couldn’t come at a better time, especially when the local film industry needs some love and Canada-U.S. partnerships are… well, let’s just say they’ve been better.
“On a day when Canada’s struggling a bit, it’s so inspiring to have a good news story like this,” said Spencer Chandra Herbert, B.C.’s Minister of Tourism, Arts, Culture and Sport, in his opening remarks. Chandra Herbet, along with B.C Finance Minister Brenda Bailey and folks from Creative BC, also attended the ribbon cutting ceremony on April 4.
“You’re one of the bright lights of our economic picture here in B.C., one of the bright lights for job growth, one of the bright lights for a better future—looking at this building and choosing to be here, a building that is net zero,” Chandra Herbert said.
What started in Vancouver as an experiment studio in 2012 has grown into a thriving location that recently won an Emmy for its visual effects work on Percy Jackson and the Olympians season one, which was also filmed locally in B.C.
“You guys have helped put the awareness of the creativity of our province on the map,” said Bailey in her opening speech, noting the studio’s work on The Mandalorian (Bailey is also an outspoken Star Wars fan herself, who happened to pose with a lightsaber on the cover of our October 2024 issue).
Bailey reiterated the provincial government’s commitment to B.C.’s creative sector and maintaining current partnerships in the wake of potential provincial retaliatory action against American protectionism. “We’re rallying this sentiment because we do need to stand up to these problematic tariffs, but it doesn’t mean we don’t love our American neighbours, we do. It doesn’t mean that we don’t want these incredibly important collaborations between American companies and Canadian companies,” Bailey said.
And these collaborations mean the Vancouver studio is also very busy.
“We think about ILM as one ILM, and Vancouver’s success is San Francisco’s success,” says Janet Lewin, Senior Vice President, Lucasfilm VFX & General Manager, ILM, on this cross-border collaboration between locations. ILM doesn’t just do VFX, it does feature animation, immersive live entertainment and has expanded heavily into TV and streaming.
Celebrating its 50th anniversary this year, ILM is also looking ahead, whether it’s with outreach to post-secondary schools and its Jedi Academy internship program, to using artificial intelligence. “We see AI tools as an enabler, and we’re definitely open to embracing the tools where they make sense,” Lewin says.
But the main element continually emphasized throughout the new studio celebration: the economic potential of B.C.’s creative talent as Hollywood North.
“There are the three Ts everyone hears about when you think about Vancouver and B.C.: tax credit, time zone, and now it’s talent with a capital T,” says Kent. These tax incentives were recently increased by Eby’s new government (subject to legislature approval), with the Film Incentive BC tax credit increasing from 35 percent to 40 percent, and the Production Services tax credit from 28 percent to 36 percent.
“In Vancouver, we have amazing talent and tax incentives which enable us to be price competitive, land the very best work, and remain very busy,” Lewin said in her opening remarks. This government support, and now the possible economic effects of ILM’s optimistic investment in the B.C. entertainment sector, leave many hoping this will help the industry continue to ramp up after the SAG-AFTRA and WGA strikes.