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Home»Business & Industry»How Automation Is Helping Cannabis Companies Survive the Slump
Business & Industry

How Automation Is Helping Cannabis Companies Survive the Slump

May 12, 2023No Comments4 Mins Read
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How Automation Is Helping Cannabis Companies Survive the Slump
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digital futuristic technology in smart argriculture farm using ai artificial intelligence, machine learning, digital twin, 5g, big data, iot, augmented mixed virtual reality, ar, vr,robot,digital
Illustration: EPStudio20 / Shutterstock

Whereas robots and artificially clever digital bots begin to land unique jobs in manufacturing, agriculture, and different forms of industrial manufacturing, good hashish corporations are investing more cash into mundane machines used to create pre-rolls, stamp out labels, or trim flower. With a view to compete in an more and more aggressive market, automation is likely one of the best methods for corporations to chop prices and enhance backside traces.

“What we’re seeing throughout the US is the value of hashish has fallen and, as costs compress, the best way to make cash on this enterprise—whether or not you’re a cultivator, processor, or retailer—is to have a decreased value of products offered or a decreased value foundation,” mentioned Andrew J. Kaye, chief business officer at Sweet Leaf Madison Capital, which lends cash to hashish corporations for actual property, tools leasing, and money expenditures. When Kaye talks about automation, he focuses on areas the place corporations can streamline manufacturing simply and make labor-intensive processes extra environment friendly. “You should get extra cash out of each greenback spent, so I feel automation is an space the place we’re going to see numerous focus—even in distribution—as a result of it’s a necessity to outlive.”

Listed here are only a few of the methods automation has impacted the business.

Table of Contents

Toggle
  • Cultivation
  • Safety
  • Packaging
  • Edibles

Cultivation

Built-in, automated environmental controls can embrace all the pieces from water administration to air circulate, fertilizers, pesticides and fungicides, and extra. The bigger the develop, the extra important these techniques develop into to guard towards crop failures. Some techniques incorporate info and information about particular person crops and plant beds, giving growers perception into strategies that can result in increased yields and extra useful biomass.

Safety

Automated safety techniques assist corporations monitor managed entry to numerous components of the manufacturing course of. Likewise, they assist corporations administer insurance policies and procedures which might be dictated by state laws. Exhibiting the small print and customary working procedures inside a totally built-in safety system is likely one of the most necessary components of profitable a license in most states, to not point out remaining compliant as soon as the license is issued.

Packaging

Due to strict laws governing labeling and product date stamps, corporations are deploying automated techniques that mix packaging and labeling right into a single system. For cultivators who produce their very own pre-rolls and customised packages, these techniques are important instruments.

“Loads of these instruments are incremental, however I feel packaging might be the one space the place there’s been numerous consideration as a result of, for instance, one packaging machine that prices $250,000 can in all probability exchange 4 staff,” mentioned Kaye. In that situation, he defined, a shopper would possibly put 25 % down on a machine and pay about $12,000 a month to service the mortgage. In return, they might save as a lot as $25,000 a month in worker prices and recoup their funding in lower than a yr.

Kaye additionally talked about one Colorado retailer makes use of a merchandising machine to scan the shopper’s info, print out a compliant label, and affix it to the package deal when a purchase order is made.

Edibles

Whether or not it’s baking cookies or stamping out gummies and mints, automated machines can deal with many components of the edibles manufacturing course of. Moreover, as well being and biotech corporations develop extra medicinal types of hashish, additionally they will develop more and more automated manufacturing processes much like these employed within the pharmaceutical business.

Whereas giant multistate operators might appear to be main the best way in adopting automated manufacturing techniques, Kaye famous most of Sweetleaf’s shoppers are small and medium-sized companies. He urged many of those corporations are extra keen and inclined to undertake new applied sciences that can assist them scale back prices.

“The competitors in cultivation and all components of the worth chain has resulted in an acute consciousness that reducing your manufacturing prices and rising effectivity will will let you survive and thrive,” he mentioned. “The midsize [companies] are doing between $50 and $100 million a yr in gross sales, and I feel in some methods they’re extra nimble and extra cost-sensitive.”

So whereas it is perhaps tempting for hashish corporations to search for intelligent methods to make the most of ChatGPT or Microsoft’s AI arsenal of their operations, their greatest guess for now could also be to ask these bots a easy query: “How can I exploit automation to streamline my processes?”

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