Well when you shrink volume and capacity you increase costs hugely if you are talking producing at a plant. There already has been a huge amount of volume and capacity taken off line in the past decade. If manufacturing film is anything like producing pulp and paper the trend has been to run larger/faster machine 24hrs a day 365 days a year at as fast a speed as possible. You don't want to interrupt the process or slow the machines down as this would eat into profits by increasing costs. I really don't think that the production of film at a level that would provide the same profit margins and keeps costs to the consumer reasonable can be done on a small scale. I am not saying small scale film production can't be done it is just that you will have to pay very dearly for it. That alone drives more people away than it would attract.
Bob
This is something that I think some people have been missing to a degree.
If you work with printers you get the picture. Printers need to have presses running. That's how they make money. It doesn't matter if they are running small jobs at cost in between the big stuff, the presses have to run. That's how you maintain cash flow, that's how you keep people who know how to keep everything running paid and at the printing plant.
If work slows and presses are idle you will begin a domino effect that will end in the printer closing shop.
At the moment, I'm a film guy, but I don't see any of the big players able to keep it going for too much longer I'm afraid.
I do feel that a company like Ilford may be best suited to keep things going on a smallish scale as time goes by.
But don't think this is about people making stuff in a bathtub. It's not. There's a breaking point, I just don't think anyone really knows where it is.
One should also note that the history of photography has been about shedding old technology and processes for newer and better ones. While the "newer" of digital photography cannot be disputed, the "better" remains an argument for only a few and is, at best, highly subjective.
I sometimes wonder if film at this point is as much about cameras as process? The interest in and success of the X100, X1, and M9 give some credence to that possibility. I love simple, well built cameras and these are few and far between in the digital world. This and nostalgia are strong anchors. But if more products like the X100 are released and as sensor technology improves and prices fall (hopefully) will the film fans continue to be fans?
I think I'm at that point where I'm questioning film but not yet able to part with it.