Why does it feel like your cannabis operation is gulping down dollar bills for breakfast each morning?
Labor costs are absolutely decimating cannabis businesses as we speak. Between harvest workers expecting $14-$25 per hour and the cannabis industry providing over 440k full time jobs, payroll taxes are destroying cannabis operators everywhere.
Except you don’t have to choose between your craft and profitability anymore.
Businesses willing to look into cannabis automation solutions from companies learn that automation is revolutionizing the industry and streamlining production.
You’ll learn:
- Why cannabis labor costs can’t be sustained
- The top 5 cannabis automation companies solving the crisis
- How to calculate ROI on automation (hint: it’s quicker than you think)
- Actual automation strategies that work
Cannabis Labor Costs Are Out Of Control
Here’s the unfortunate situation we find ourselves in…
Cannabis companies NEED qualified workers to ensure consistent quality but damn if those workers aren’t expensive.
Combine that with the fact that only 27% of cannabis businesses say they’re profitable and it’s easy to see why we’ve got ourselves a crisis.
But wait, there’s more…
Sure those employees get you from point A to point B. What about all the extra hidden costs?
- Personal protective equipment
- Training and retaining quality employees
- Making sure employees follow compliance mandates
- Staffing quality control
Ouch.
Top 5 Cannabis Automation Companies Crushing It Right Now
Alright – here are the companies that are building the solution to our problems…
1) Sorting Robotics
These guys are getting serious attention in the industry. Built by former NASA engineers (yeah…you read that right), Sorting Robotics specializes in automating cannabis manufacturing operations.
Their Jiko automated system can process infused pre-rolls while their newest addition, The Stardust, is THE ONLY automated kief coating machine in the world.
Why they’re #1: Not only are they focused on automating tedious tasks, they help companies reimagine ENTIRE production operations. Many customers report ROI in under 12 months.
2) Mobius
Mobius offers heavy-duty automation for your post harvest processing needs.
From trim to buds, their M108S Trimmer and MBX Bucker systems can replace your entire trimming department at a fraction of the cost. They even preserve more terpenes and cannabinoids than hand trimming.
3) Green Vault Systems
Green Vault Systems’ core focus is cannabis packaging and weighing operations.
Sounds boring, but check this out. Their Precision Batcher machine is so efficient that one cultivator and retailer in Michigan decreased their staffing levels from 6 employees clocking 32 hours a week EACH to only 2 employees clocking 12 hours a week. 87% fewer hours.
4) Bloom Automation
Artificial intelligence + cannabis processing = bingo.
Enter Bloom Automation. These guys use some next-level camera technology and machine learning to assess and process your flower. Picture Grant Williams (Lead Growing Expert at Leafly) working THROUGH an entire harvest. Now scale that up by 100.
5) DEVELOP LLC
The king of pre-roll production automation.
Their machines grind, cut, clip, index, insert, print, weigh and package your pre rolls at speeds you won’t believe. If you NEED to scale exponentially without sacrificing consistency, DEVELOP’s your guy.
The Simple Math Behind Why Automation Is Insane
Hold onto your wallet, this is about to blow your mind…
Imagine you’re operating at a moderate size and have 10 employees trimming full time. If we even pay them “easy work” wages of $20/hr here’s what your yearly payroll adds up to:
- $8,000 per week
- $32,000 per month
- $384,000 per year
And we didn’t even consider benefits, PPE costs or training expenses.
Completely automating that process with a robot will probably cost you less than that… PER MONTH.
And most systems pay for themselves in 6-12 months. After that? It’s ALL profit margin improvement.
Automation Tips From Operators That Actually Work
Alright, let’s hear it from the horses mouth…
What are other operators doing to reduce labor costs?
Focus on your biggest bottleneck. Every cannabis operation is different. Maybe it’s trimming. Maybe it’s pre-roll production. Maybe it’s packaging. Identify your biggest pain point and automate the living hell out of it. Once you’ve maxed out your efficiency there, move to the next process.
Don’t automate bad processes. We all got em. If you find yourself routinely slacking in one department, don’t automate it until you fix it. You’ll just be streamlining bad work.
Automate once, train twice. Don’t trust your automation to run itself. Teach your employees what to look for. Your trimming department can now focus on quality control instead of mindlessly passing out paycheck after paycheck.
Don’t underestimate the power of automation.
Yes, robots are replacing jobs. But they’re also creating opportunity for your business in ways we couldn’t have imagined just a few years ago. No longer will your best employees be stuck doing repetitive manual tasks all day long. Automation allows you to reallocate those employees to more value-add work.
Got quality control issues? Have them inspect your product.
Struggling to differentiate your brand? Have them manage customer experience.
Want to completely revamp your products? Have them work on R&D and product development.
Want all of the above? Go nuts.
Benefits of Automation You Won’t Hear About
In addition to slashing labor costs, cannabis automation comes with a handful of hidden perks.
Your products quality and consistency will skyrocket. Ever product will weigh the exact same. Every package will look professional. Your overhead costs go down. Your brand reputation soars.
Cannabis automation also makes compliance a breeze. Need to prove to the CT department that all your product consistently meets federal requirements? Automated systems log EVERYTHING. Don’t get caught sweating during your next inspection.
Once you automate, scaling your business becomes effortless. Want to double production? With enough automation, you won’t need to double your workforce.
Your workers will be safer than ever. Hand trimming comes with repetitive muscle strain injuries that force workers to constantly take time off. Automated machines don’t get tired or make mistakes due to exhaustion. Your workers comp claims will dry up.
Automation also increases product consistency. Machines don’t “lose focus” towards the end of their shift. They aren’t human. Your products will absolutely beat hand products in a blind taste test.
Oh, and the planet loves automation too.
Machinery becomes hyper efficient at using resources. Less waste. Less energy per final product. Small carbon footprint = huge consumer satisfaction.
It’s Okay To Be Scared, But Take The Leap
Feeling stressed? Don’t worry. We all were at first.
The best way to dip your toes in the water? Start by automating one pain point. See how much you can save. Then automate another process. Soon you’ll have half your operation automated and your costs will NEVER be the same.
Here’s a common concern: “Man, that equipment costs a fortune!”
True… and false.
Think of how you’d like to spend that money if you didn’t have to spend it on automation. Rent? Employees? Food? Sure, those things are important. But how often do you use that piece of equipment?
When you buy automation, you’re not spending money. You’re investing in your company’s future.
Another month = another month of unnecessary expenses.
What To Do Now
The cannabis industry will NOT be slowing down any time soon. We have a long ways to go until cannabis is federally legalized but in the meantime, consumer demand continues to grow while prices are plummeting.
If you want to stay afloat? You have to become more efficient.
Smart cannabis automation allows you to cut your labor costs in HALF (no joke 50-87%!) while maintaining craft level quality, scale without massive staff increases and finally make a profit.
The cannabis companies who invest in themselves with automation now will be leading the industry in 5 years. Those who don’t… won’t exist.
Ready to take control of your bottom line?
Do yourself a favor and sit down with your payroll bills and really see how much money you’re spending on labor. Then message those automation companies and ask them how they can help you improve your margins.
The future of cannabis is automated. You just gotta decide if you want to lead your competition or watch from behind.
Let’s do this.
