US cannabis growers keep a tight lid on costs as recession looms
Source: Marijuana Business Daily – Article by Bart Schaneman
As the coronavirus pandemic plunges the U.S. economy into a sharp downturn, cannabis cultivators are managing finances by rethinking capital improvements and finding any area possible to lower costs.
Although demand remains strong for marijuana in many state markets, prudent cannabis cultivation executives are planning for the worst and tightening their belts.
Some have become more self-reliant when it comes to maintaining and repairing machines, while others are mixing their own sanitation chemicals and reusing personal protective equipment out of necessity.
DIY maintenance
At Otis Gardens in Hood River, Oregon, cultivation director Pieter Summs said the company recently audited costs across the company, and that’s put the business in good financial shape.
Supplies for sanitation materials such as bleach and personal protective equipment, including gloves, have either become more expensive or difficult to find.
To help defray those costs, management has become more strict in how, for example, workers are using their gloves.
“Everyone got into a very relaxed state (before the pandemic) because there was no shortage of materials,” Summs said.
One strategy to save money on supplies: Summs will look at the label of a brand-name product and, instead of paying a premium for the name, he identifies the active ingredient, or chemical, and sources it directly.
Costs for equipment maintenance and replacement can be managed by training workers to understand the machines and how to repair them, rather than calling a technician or flat-out swapping out the old part for a new one
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