With marijuana now legal in some capacity in more than half of all states, the industry is poised to see a job boom over the next few years.
Even prior to the election, industry analysis conducted by ArcView group and GreenWave Advisors tallied that the industry was worth somewhere between $4.8 billion and $5.4 billion in 2015, with projections that it would hit $6.5 billion to $6.7 billion this year. Both groups say the industry will surpass $20 billion nationally by 2020, while others, such as Marijuana Business Daily, is opining growth could be up to $40 billion over the next five years. Those estimates are only going up since the results of the November election, when eight states – including California – voting to legalize the drug in some capacity. Here, recreational use and possession is now permitted, and regulations are being worked out to determine the guidelines for production and sales.
Already, some individuals who got in early enough – when the field was still quite new and very risky – have struck a veritable gold mine. One entrepreneur in Denver opened a dispensary there in 2009 called Medicine Man. Now, several of his family members are on board, running nine businesses that employ over 100 workers in total. Employees at his country make anywhere from a starting salary of $13-an-hour, all the way up to six-figure positions for working in critical management roles.
The industry in general has some very unique problems and challenges to navigate in the course of bringing a black market into the light. It is still in its infancy and there will be growing pains. But for those individuals looking to hammer out a solid marijuana business plan, our experienced marijuana lawyers in L.A. can help. As many entrepreneurs recognize, every issue is actually an opportunity.
Still, both advocates and entrepreneurs watched closely as the U.S. Drug Enforcement Administration announced it wouldn’t alter marijuana’s current position as a Schedule I narcotic. That means that for now, the substance is still deemed illegal at the federal level. However, there were still 1 in 9 marijuana ballot initiatives that did pass in November. That means the marijuana industry is still going to grow pretty rapidly.
There does remain some uncertainty in so far as what a Trump administration will mean for the industry and how regulations will be handled. However, the political stakes to completely dismantle the industry at this point could not be higher. We’re talking about an industry that so far has created 150,000 jobs and is drumming up billions of dollars in revenues and tax dollars.
Last year, the legal marijuana industry in Colorado reportedly created 18,000 new full-time jobs and generated $2.4 billion in economic benefits. That’s just in one state. That figure also does not account for the other benefits, which include increased demands on local goods and services. For example, marijuana cultivation requires warehouse spaces and advanced lighting and irrigation systems. Marijuana retailers also rely on contractors, marijuana attorneys and book-keeping services. There are also nearby venues, such as bars and restaurants, that may benefit from having a dispensary in the community.
The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.
Weed business set to be one of fastest growing job generators in US, Dec. 2, 2016, By Kate Rogers, CNBC
More Blog Entries:
California Marijuana Law Erroneously Allows Tax-Free Marijuana Through 2017, Dec. 10, 2016, L.A. Marijuana Lawyer Blog