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How cannabis is firing up the U.S. supply chain

With the recreational use of cannabis now legal in 10 states and the District of Columbia and medical marijuana legal in 23 states, marijuana is on its way to becoming an $80 billion industry in the United States by 2030, according to estimates by Cowen Inc.

U.S. companies cannot stop talking about marijuana, hoping in part they can catch investor interest as the booming economy around the drug lifts revenues throughout the supply chain.

That outsized growth is starting to bleed into adjacent industries ranging from energy to packaging to point-of-sale technology whose products are used in the production or sale of marijuana. As investors circle the cannabis space, supply-chain companies are showing a new willingness to associate themselves with an industry that remained largely illegal a decade ago.

For supply chain companies, revenue from cannabis “realistically could be a couple of percentage points a year,”

Cryogenic equipment manufacturer Chart Industries Inc told analysts on Feb. 14 that “cannabis has double-digit growth potential for us” as more grow houses use liquefied carbon dioxide in the extraction of marijuana.

Point of sale company Socket Mobile Inc said on Feb. 13 that cannabis dispensaries are “ideally suited to iPad-based point-of-sale solutions for accounting and regulatory compliance”.

And private security company Brinks Co said on Feb. 6 that its North America segment should have “another strong year” due in part to the growth of the cannabis industry.

Read entire post How cannabis is firing up the U.S. supply chain | David Randall | Reuters
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