For companies supplying equipment for major film and television productions, staying ahead of the curve means leaving the traditional seat of the movie-making business. That’s why Burbank-based rental houses Coffey Sound and Wexler Video have branched out to open locations in North and South Carolina. As production efforts flood out of state and overseas, suppliers like Coffey and Wexler are following suit to meet changing industry needs. “Other states offer significant tax incentives,” said John Coffey, company founder and president. Started in his garage in 1988, Coffey’s company grew to become a highly regarded innovator within the industry and one of the earliest supporters of non-linear recording techniques and pioneering audio workflow solutions. Coffey Sound was acquired as a subsidiary by Wilmington, N.C,-based Telecorps, a company that additionally owns Wexler Video, a supplier of broadcast equipment for film and television. “Incentives for the film and television industries have brought a great deal of business to North Carolina,” said Dave Carfolite, executive vice president of Telecorps. His firm is establishing a new Wilmington office for subsidiaries Coffey and Wexler, through a partnership with EUE Screen Gems Studios. Hollywood Teamsters Local 399 representative, Steve Dayan notes that everyone from fellow union members, all the way to aspiring actors, extras and other movie service and support personnel are being affected, especially “below-the-line” crew members. “Productions go where they’re offered the best incentives. The legislature here in California has the opinion that they don’t need to subsidize,” said Dayan. “Thirty to 35 states offer incentives. To me, this is a loss of the middle-class tax base.” With major Hollywood studios, such as Sony, establishing extensive infrastructure in states such as New Mexico and EUE Screen Gems Studios with its Wilmington operations, it’s easier and easier to keep big movie productions coming back and draw the support companies like Coffey and Wexler away from Hollywood. Moves out of state aren’t just good business for companies like Coffey, the aftermath can go much deeper, as traditionally Hollywood jobs go elsewhere. With some productions using between 100 and 300 employees, encompassing Teamster and other union members, in addition to a host of other support and service workers who constitute the backbone of the national and world entertainment industries. “Companies are following the business,” said Steve MacDonald, president of FilmLA, the not for profit agency handling on location permitting in the city. “It’s a clear indicator of what’s going on. It’s most apparent in New Mexico, Louisiana and New York.”