Friday, Jun 14 2019

As the Cannabis Industry Grows, So Does the Opportunity for Tech Innovation

Written by

As the Cannabis Industry Grows So Does the Opportunity for Tech Innovation

 

The cannabis industry has grown substantially over recent decades. An increasing number of states have legalized medicinal marijuana, 10 states already allow recreational marijuana, and many other states have legislation in the works that may result in recreational or medicinal cannabis legalization.

While the cannabis industry is continuing to grow, it also faces unique challenges. Cannabis-related products are still illegal on a federal level, and the financial portions of cannabis-oriented operations can be hard to manage. Additionally, as demand increases, supply issues can occur.

Further, since the cannabis industry is still highly controversial, many IT solutions providers have avoided getting involved with businesses in this arena. Similarly, tech creators aren’t focusing on the industry, limiting the development of new products that could help this sector.

As a result, there is a substantial opportunity for tech innovation in the cannabis industry. If you are wondering how new technology could help this fledgling sector, here’s what you need to know.

Businesses in Need of Solutions

The cannabis industry is highly complex. Tracking the various components – including production, shipping, distribution, retail space, customer sales, employee payroll, and more – isn’t easy. This is especially true since many existing tech solution providers avoid the cannabis sector do the legal and financial challenges that come with it. Those that are open to assisting cannabis businesses can often charge a premium for their services.

Overall, there is a shortage of viable IT solutions in the cannabis industry, both when it comes to providers and when you consider the products themselves. Most cannabis businesses don’t have the technology they need to track production, product in transit, or inventory. Retail locations often struggle to anticipate what they need for future orders, and production facilities may have issues estimating demand and adjusting their outputs.

Plus, many of the solutions that do exist aren’t robust or all-encompassing. As a result, there is a significant opportunity for tech innovation, as a major hardware or software product designed for this industry would likely be considered a gamechanger.

 

Where the Tech Jobs Are

Companies that are working to innovate for the cannabis industry have found homes in cities within states that are largely cannabis-friendly. Seattle has become a hub for cannabis-related IT solutions development, as well as Denver and Boulder, Colorado. California, a state that has been at the forefront of the cannabis industries initial traction and expansion, is also brimming with tech job opportunities related to the sector.

While there is still some risk for tech pros who work for cannabis-oriented tech companies, mainly because the industry is still controversial, accepting a position with a tech business that creates solutions or provides services to cannabis businesses isn’t as potentially damaging to one’s career as it had been in the past. The idea that cannabis products have value medically or should be seen like alcohol on the recreational side is spreading, so the culture in the US is shifting to view the sector more favorably.

Ultimately, the cannabis industry is growing quickly, and it's not likely to go away, leaving plenty of room for tech innovation for the companies and professionals who want to be at the forefront of development in this arena.

 

To Find the Most-Talented Tech Professionals, Reach Out to The Armada Group

If you’d like to find out more, the staff at The Armada Group can help. Contact us to speak with one of our highly skilled team members today and see how our tech industry expertise can benefit you.