Scott Squires:
Some of the key problems include compressed post-production schedules that require overtime from the start just to complete the work on time, never ending changes from clients until the film is in theaters, film incentives shifting where and why work is awarded and increased competition from more visual effects companies.
There are a lot of problems with the visual effects industry. I would also argue that the Whole motion picture industry is in a bad spot right now. Even production crew memebers are having to travel. It used to be that you would only go to exotic locations for a few weeks if you were lucky. The rest of the time was spent on a stage in Burbank.
Free work and money is a hard thing to give up. Look at the recent R&H news. While most of it is talk and from what I hear the artist are taking it that way [just talk]. It doesn't bode well to be in debt to 3 studios.