We now live in a nation where more than half the population has access to medical or adult-use cannabis and it is one of the fastest growing markets in the United States. It is also one of the most scrutinized and tightly controlled markets and because of that, it’s critical for cultivations to keep a close watch on their operations.
The product behind the $6.7B 2016 market comes from approximately 4,200 cannabis cultivators. Lodestone’s target market are cultivations that are larger than 10,000 square feet. That’s where we see our solution providing the largest operational efficiencies.
We anticipate that the size and number of cultivations required to meet the increasing demand for cannabis in the U.S. to only increase as we move to a $50B market in 2026.
The challenge that cultivators today have as they plan for larger and larger operations is that the tools available to them on the market today are primarily barcode-based. This is an appropriately sized tool when you are looking at managing 1,000 plants/year, but it is not up to the task when you are working with 50,000 plants in a year.
RFID can solve that problem and there’s a reason why retailers, libraries, hospitals, and warehouses have all adopted RFID-based solutions to manage and track their valuable inventory – it dramatically reduces labor costs, reduces error, and frees your labor cost to focus on high-value activities. Growers can get back to doing what they love to do and not what they have to do.
But inventory management is only part of the system. Once you have every plant tagged and are gathering real-time item-level intelligence, so much data that our system effortlessly picks up for update on our analytical platform. As cannabis cultivating becomes more and more accepted in the US, we are seeing the collaboration of conventional businessmen with younger less-traditional cannabis cultivation entrepreneurs. These traditional businessman knows very little about commercial cultivation so the best way to vet the process is with the numbers. Does the investment look sound? Is there a way to monitor the investment? Can process efficiencies be accessed with data? If the cultivator is using our system the answer is, Yes!
If you’re interested in learning more about Lodestone’s plans for 2017 and beyond and how you can be an important part of our growth strategy.