Because of the equipment crunch, used equipment values are skyrocketing as producers seek solutions to the supply chain nightmare.
THE MANY CHALLENGES OF SOURCING NEW EQUIPMENT IN 2021
It’s tough going for new and expanding facilities in the cannabis sector, as it is everywhere else. Throughout the entire cannabis network, companies are struggling to get the equipment they need to cultivate, process, extract, and package their goods.
Brands seeking extractors, trimmers, and other pieces of equipment from Chinese manufacturers find that their orders are languishing in overseas warehouses, waiting for cargo space. Or, suddenly, the cost savings associated with buying Chinese-made goods have evaporated as the freight costs have risen to $20,000 per 40-ft container.
With these challenges piled on top of everything else that’s been unraveling in the global supply chain this year, used equipment sales are one of the only viable options for brands looking to build and expand.
Read the full article originally published on CannabisTech.com