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The fatal shooting by Alec Baldwin on a movie set has put a microscope on an often-unseen corner of the film industry where critics say the pursuit of profit can lead to unsafe working conditions.

With a budget around $7 million, the Western 鈥淩ust鈥� was no micro-budget indie. The previous best-picture winner at the Academy Awards, 鈥淣omadland,鈥� was made for less. But the New Mexico set where Mr. Baldwin shot cinematographer Halyna Hutchins had inexperienced crew members, apparent safety lapses, and a serious labor dispute.

For some in the business, the failures reflect larger issues in a fast-evolving movie industry.

鈥淧roduction is exploding, corners are being cut even more, and budgets are being crunched down even more,鈥� said Mynette Louie, a veteran independent film producer. 鈥淪omething鈥檚 got to give.鈥�

The shooting happened at a busy time: Production is ramping up following the easing of pandemic restrictions. Streaming services are increasing demand for content. And all the while, the industry is wrestling with standards for movie sets.

Santa Fe County Sheriff Adan Mendoza said there was 鈥渟ome complacency鈥� in how weapons were handled on the set. Investigators found 500 rounds of ammunition 鈥� a mix of blanks, dummy rounds, and suspected live rounds, even though the set鈥檚 firearms specialist, armorer Hannah Gutierrez Reed, said real ammo should never have been present.

Attention has focused on Ms. Gutierrez Reed, who had worked on only one previous feature, and assistant director Dave Halls, who handed the gun to Mr. Baldwin. According to a search warrant affidavit, Mr. Halls called out 鈥渃old gun鈥� to indicate it was safe to use but told detectives he did not check all of the weapon鈥檚 chambers.

The lack of proper weapons protocol stunned veteran film workers.

鈥淭his was incompetence, inexperience, and 鈥� I hate to say this 鈥� lack of caring about your job. If there鈥檚 a whole bunch of ammunition thrown together in a box, that鈥檚 not how it鈥檚 done,鈥� said Mike Tristano, a longtime professional armorer.

Several 鈥淩ust鈥� camera crew members walked off the set amid discord over working conditions, including safety procedures. A new crew was hired that morning, according to director Joel Souza, who spoke to detectives. He was standing near Ms. Hutchins and was wounded by the shot.

The New Mexico chapter of the International Alliance of Theatrical Stage Employees (IATSE) union called reports of nonunion workers being brought in 鈥渋nexcusable.鈥� The union will soon vote on a new standards agreement covering 60,000 film and TV crew members 鈥� a deal reached with major studios after IATSE prepared for the first strike in its 128-year existence.

In a statement, 鈥淩ust鈥� executive producer Allen Cheney said the six producers on the film collectively had more than 35 years of experience in film and television. He called 鈥淩ust鈥� a 鈥渦nion-certified production.鈥�

James Gunn, the 鈥淕uardians of the Galaxy鈥� filmmaker, suggested a slipshod culture could be partly to blame.

鈥淒ozens have died or been grievously injured on movie sets because of irresponsibility, ignoring safety protocols, improper leadership, and a set culture of mindless rushing,鈥� Mr. Gunn said on Twitter.

The gaffer on 鈥淩ust,鈥� Serge Svetnoy, faulted the movie鈥檚 producers for 鈥渘egligence.鈥�

鈥淭o save a dime sometimes, you hire people who are not fully qualified for the complicated and dangerous job,鈥� Mr. Svetnoy said in a Facebook post.

Veteran prop master Neal W. Zoromski told The Los Angeles Times that he declined an offer to work on 鈥淩ust鈥� because producers insisted that one person could serve as both assistant prop master and armorer.

Gary Tuers, property master of 鈥淭omorrow War鈥� and 鈥淛urassic World: Fallen Kingdom,鈥� said the shooting was 鈥渁n indictment of the modern production culture, which for the last 30 years has pursued tax credits and found every way imaginable (and several that weren鈥檛) to sacrifice crew health and safety in the name of budget consciousness.鈥�

鈥淭his tragedy was an apparent accident,鈥� he wrote on Instagram. 鈥淏ut it was also a predictable outcome of the incentive structure within the modern film industry.鈥�

Several companies came together to finance and produce 鈥淩ust,鈥� including Mr. Baldwin鈥檚 El Dorado Pictures. The film, which is based on a story by Mr. Souza and Mr. Baldwin, was financed in part by Las Vegas-based Streamline Global, which describes its business model as 鈥渁cquiring films that offer certain tax benefits鈥� that may 鈥渞educe the owner鈥檚 federal income tax liability from income earned from other sources.鈥�

BondIt Media, an independent film financier, also bankrolled 鈥淩ust.鈥� The Santa Monica, California-based company has helped finance other male-fronted action thrillers like Liam Neeson鈥檚 鈥淗onest Thief,鈥� Mel Gibson鈥檚 鈥淔orce of Nature,鈥� and Bruce Willis鈥� 鈥淗ard Kill.鈥�

Even before the shooting, the most likely destination for 鈥淩ust鈥� was probably video on demand. Last year, Mr. Baldwin promoted the movie to buyers at the virtual Cannes film market. The actor told The Hollywood Reporter that the script reminded him of 鈥淯nforgiven,鈥� a 1992 Western starring Clint Eastwood.

Days after the shooting, the production of 鈥淩ust鈥� was suspended indefinitely.

The movie was being made under a tax provision called Section 181, which applies to films costing $2.75 million to $7.5 million. It can allow investors to break even before a film reaches any screen, particularly in a state with generous tax credits like New Mexico. The state has been a popular place for productions in recent years. Some of its regulations, including for on-set weapons experts, are less stringent than in California.

In his 30-year career, the armorer Mr. Tristano hasn鈥檛 often experienced producers or crew members who cut corners on safety. But when safety is in question, he has not hesitated to pull his team off a set.

鈥淲henever I was on a set where there was a lot of panic going on, or the AD [assistant director] was rushing, I would say, 鈥極K, I鈥檓 locking the guns back in the truck,鈥欌�� Mr. Tristano said. 鈥淚鈥檇 say, 鈥榃hen you guys are ready to do it right, we鈥檒l do it. If you don鈥檛 like that, fire me.鈥欌��

This story was reported by The Associated Press.