Since Dynamic Conveyor has designed conveyor systems for the cannabis industry, we recently attended the 12th annual MJBizCon event. This gathering proved to be an invaluable opportunity to gain deeper insights into the dynamic landscape of the cannabis business segment and its vibrant community. Here, we share the key takeaways from this event that shed light on the industry’s resilience, creativity, challenges, and future.
Resilient and Passionate Industry
Despite grappling with challenges such as regulations, public perceptions, and market fluctuations, the cannabis industry stands out as an emerged and passionate community. The ability to adapt and innovate has become the cornerstone of their success.
Creative and Innovative Minds
The cannabis industry is home to creative and innovative minds that have harnessed the cultural aspects of cannabis, leading to groundbreaking branding, packaging, and marketing strategies. This creativity resonates with a diverse audience, showcasing the industry’s commitment to artistic expression.
Legalization Discrepancies and Taxation
The industry’s progress faces a significant hurdle due to disparities between federal and state legalization. The federal tax law, Section 280E, poses challenges by restricting businesses from deducting ordinary expenses associated with the “trafficking” of Schedule I or II substances. Prospects of revising marijuana to a Schedule 3 controlled substance in 2024 offer hope for easing tax burdens, paving the way for financially sustainable businesses.
The cannabis industry encounters formidable challenges in banking and securing financing, primarily due to the federal-state legalization gap. Financial institutions remain cautious due to potential federal repercussions. The awaited marijuana banking reform through initiatives like the SAFE Banking Act aims to address these challenges, fostering greater financial stability for the industry.
Multi-State Operators (MSO)
Multi-State Operators, akin to large cannabis corporations, operate in multiple states. Cannabis regulations vary significantly from state to state, and compliance with these regulations is a constant challenge for MSOs operating in multiple jurisdictions. Navigating through diverse regulatory frameworks can be complex and resource intensive.
Longevity Equals Growth
Cannabis businesses with three years of longevity are poised for growth and sustainability. The collaboration between venture capitalists and dedicated entrepreneurs defines success in this industry, differentiating hobbyists from true business leaders.
Pharma and Tobacco Entry
Anticipation surrounds the potential entry of pharmaceutical and tobacco companies into the cannabis industry once Section 280E is lifted. Their expertise in manufacturing could intensify competition, marking a significant evolution for the sector.
Equipment and Machinery, and Opportunities for Cannabis Conveyor Solutions
Cannabis manufacturers use a variety of equipment throughout the cultivation, processing, and packaging stages of their operations. The specific equipment used varies depending on the scale of the operation and the specific products being produced. There was a high level of interest from cannabis business owners in identifying the latest and greatest machinery available to streamline operations and create efficiencies in the production process. Dynamic Conveyor’s products are a good fit for conveying cannabis during transport in cultivation and after packaging. Infeed or exit conveyors are also valuable to move cannabis products between other ancillary machinery used in the process.
The cannabis industry exhibits an extraordinary sense of community solidarity, especially in times of uncertainty. From small businesses to industry giants, a collaborative spirit fosters resilience, shared success, and a supportive ecosystem.
Resilience in the cannabis industry extends beyond overcoming challenges; it involves thriving in diversity. The industry’s commitment to inclusivity creates a robust ecosystem that values different perspectives and experiences.
While predicting the future of the cannabis industry remains uncertain, the 12th annual MJBizCon event showcased the optimism, determination, and innovative spirit of pioneers and leaders. The industry’s commitment to resilience and sustainability positions it for the most promising future possible.