CVIndependent

Fri08232019

Last updateTue, 18 Sep 2018 1pm

The California cannabis industry is now in its second year of legalization—and excitement within the industry is building. Experts in the Coachella Valley have been diligently preparing their forecasts for 2019—so we decided to ask them what they’re expecting to happen.

One leader in the industry is predicting great things for 2019. Adrian Sedlin, CEO of Canndescent, which has a large grow facility in Desert Hot Springs, is expecting the industry to boom as legalization spreads globally.

Sedlin notes that in 2018, the adult-use cannabis market tripled in population size, and says that as the industry grows with adult use, so will production. He also thinks the political arena is looking better for legalization, as more political candidates are promoting federal legalization.

“Many critics argue that California made a mess of things in its first year regulating adult-use cannabis,” Sedlin said. “(The year) 2019 will prove far more prosperous for license-holders as operating a cannabis business without a license will finally become a felony.” 

The economic potential in the Coachella Valley is huge, considering the amount of open land and the potential for cannabis-industry growth here. Brent Buhrman, CEO of Nationwide Cannabis Funding and president of the Coachella Valley Cannabis Alliance Network, is predicting the industry in the valley “will see an explosion of growth as new cannabis development becomes vertical and operational.” Buhrman also expects real estate in the valley to hold its value, especially with many cannabis investors who were waiting for two things to happen that, well, just happened: the passage of the Farm Bill and the departure of Attorney General Jeff Sessions. These investors are “ready to play ball,” says Buhrman, “and the watchers are now ready to jump into the game.” Buhrman predicts the Coachella Valley will see a new wave of people and companies come forward as a result.

With the industry starting to mature, Sedlin does expect some—no pun intended—weeding out to occur. He foresees stocks changing drastically, and as a result, the “high-profile sackings” of two or three high-profile CEOs at publicly owned cannabis companies.

Other seasoned cannabis entrepreneurs see different transitions on the horizon. Eric Crowe, of Cathedral City-based Mystic Valley CBD, who has been on the forefront of the Colorado cannabis industry for the last 15 years, predicts Coachella Valley happenings will mirror much of what was seen in Colorado. Crowe is predicting a clearing in the industry, which will lead to legitimacy and credibility as well as a surge in canna-tourism. This surge, Crowe states, “will created unprecedented economic growth in the valley, which will include all ancillary business, such as construction, hospitality and all business trades.”

Crowe cautions that lessons learned from Colorado should be heeded as the Coachella Valley cannabis industry expands.

“All industry in the valley, in some way, will come to depend on the cannabis industry, and as it morphs and grows, oversaturation will happen,” he said.

As happened in Colorado, Crowe anticipates the quality and quantity of the goods in the market will reach capacity, which will result in price reductions and many companies closing as a result. Like Buhrman, he predicts this will allow a new group of players to come to the table. Crowe thinks some of the new business emphasis will be on medicinal uses for hemp, specifically 100 percent certified organic growth and production. He expects that the success of some within the industry will depend on new technology; for example, his company uses reverse-engineered sound-wave technology, which focuses on the DNA of the hemp plant in order to produce the highest level of CBD full-spectrum concentrations.

The economic outlook for the cannabis industry in 2019 and beyond looks very promising—but those in the industry will need to change along with the demands of the industry.

Robin Goins is a business consultant for DR.G Consulting and works extensively in the cannabis industry in the Coachella Valley. For more information, visit www.drrobingoins.com.

Published in Cannabis in the CV

As we approach the one-year anniversary of legal cannabis in California, the Coachella Valley has gone through many changes—specifically on the employment front.

As this new industry has evolved, so have the career prospects in the region, with many cannabis employers in the Coachella Valley ramping up to hire in large numbers in 2019. Understandably, many potential employees have questions about careers in the cannabis industry—and there are a few things any prospective employee should know before jumping in.

The job opportunities are numerous and continuing to grow along with the industry, ranging from entry-level jobs, such as budtenders and trimmers, to high-level growers and professional roles, such as human-resource work and executive leadership. While the high-end jobs can pay up to six figures, it is taking some time for the industry to catch up in terms of pay and benefits, although things are beginning to level out.

Remember that the majority of the cannabis companies in the Coachella Valley are ever-evolving, meaning companies are not as stable as many potential employees would like. Some these companies have experienced a level of “sticker shock” at the market rate for qualified employees. Brian Harmsen, CEO of Designworks Talent in Palm Springs, which specializes in cannabis job placement, cautions that although the cannabis industry is catching up, it is still behind the curve because of its infancy. He said it’s critical that any new employee understand the scope of the work—and understand the challenges currently facing the industry. Anyone interested in entering the industry must keep in mind it is an industry in flux, and therefore may not be good for those who are not flexible, he said. As with all startup industries, there are many kinks that will take time to work out. Harmsen said startup cannabis companies are risky, often disorganized, sometimes messy, fast-changing, and lacking in infrastructure. If you don’t have the ability to tolerate the dynamics of the industry in its current state, you may want to consider waiting until the California cannabis industry is more established, he said.

The instability and newness do not mean employees aren’t entitled to the protections afforded to them by U.S. and California labor laws—and many cannabis companies are hiring people without fully understanding the legalities of being an employer, breaking labor laws and thus putting their companies at risk. Jerry Cooksey, director of marketing and employment brand at Designworks Talent, said employees need to know their rights to ensure they are protected, especially as more and more cannabis companies are coming online and ramping up their hiring.

The fact that the industry is new affects both sides on the hiring equation; there are not a lot of people experienced in the cannabis industry for companies to hire. Because of these challenges, cannabis companies must carefully consider how they do their workforce planning in order to recruit the best talent. Cooksey said cannabis companies need to fully understand their brands and who they are, identify their workforce values, determine employee support (such as benefits and compensation packages), clearly define employment needs (including job analyses), and ensure they have legitimized their ability as an employer by understanding labor law and making sure they have all of the required insurance in place.

If you have determined you can tolerate the current state of the industry and are looking to be hired, Harmsen suggested that potential employees consider the size of the company and its culture, ask questions, and look at how the company is branding and marketing itself. Also: Take queues from the interview.

There is no doubt the “green rush” is bringing new employment opportunities to the Coachella Valley. The potential for economic development in cities like Desert Hot Springs, Coachella, Indio and Cathedral City is unprecedented, and each large facility opening can mean between 150 to 300 new jobs. As things level out in the coming years, we can expect to see a solvent and strong workforce in cannabis throughout the Coachella Valley.

Robin Goins is a business consultant for DR.G Consulting and works extensively in the cannabis industry in the Coachella Valley. For more information, visit www.drrobingoins.com.

Published in Cannabis in the CV