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This report explores seven issues which producers must consider as they build or upgrade cannabis cultivation facilities to serve newly expanding markets.
- Location significantly influences tradeoffs between indoor and greenhouse facilities.
- Automation is changing the game, but also increases the imperative for having the right people managing the system.
- Build vs. buy? Buying a well-designed facility reduces the time to operationalization, but if the facility needs retrofitting of major systems, the advantage of buying declines.
- Demand for value-added products will increasingly split production between cultivation for smokable flower and for extraction.
- Resource efficiency is an increasingly important competitive differentiator and one of the easiest ways to lower production costs.
- Climate change will have increasingly consequential impacts on cultivation environments.
- Future planning for where the market is going, not where it currently is will differentiate the most successful operators.