It’s official, the novel Coronavirus is now a pandemic. The virus first appeared in Wuhan, China at the close of 2019, and as of now, over 180,000 people have been infected. As the virus swept through China, to Europe, the U.S. and finally Africa, one thing has been pretty clear. Things will get worse before they get better, and recognizing that fact, the World Health Organization (WHO) raised the virus’s threat level.
The loss of life has been immense, with the virus leaving over 4,000 people dead. The fact that it is extremely communicable hasn’t helped, and numerous governments have had to order lockdowns to curb its spread. This, however, has wreaked havoc on the world economy, and experts say the situation will only get worse. The cannabis industry hasn’t been spared either. For starters, it has been subject to the following;
Supply Chain Disruptions. China was hit hard by the virus, and numerous regions effectively went into shutdown mode. And since China is a low-cost producer, the effects have been felt across a lot of industries. The vaping segment, for instance, relies heavily on China for parts, and a lot of firms have found themselves running out of supplies with no avenues for replenishment.
A large portion of growing equipment such as heating, ventilation, air conditioning products, and LED bulbs also come from China.
Canceled trade shows. For an industry as young as the cannabis sector, trade shows are one of the few places firms can show off their products and network. However, these shows are often attended by thousands of people, and while that’s awesome when you’re looking for buyers or investors, it is a liability in the times. For instance, the CannaTech Medical Cannabis Innovation Conference was postponed until June 15-16, while the Natural Products Expo West was postponed indefinitely.
Reduced Tourism. One of the first responses to the Coronavirus was limiting flights to affected countries. However, as the virus spread, more and more countries started closing their borders. This, coupled with the lockdown and self-isolation orders, has severely impacted the tourism sector. Cities like Las Vegas rely heavily on tourism, and cannabis stores like Planet 13 Holdings are sure to see reduced sales in the coming weeks.
Major lockdowns and quarantines may be down the road if the virus keeps spreading. Countries like Italy are a good example of how things might turn out, and this won’t be good for most businesses. And if more people and infected and forced to self-quarantine, it could lead to a shutdown of most retail shops except the most essential ones.
At the moment, the best we can do is hunker down, take the proper precautions and wait the pandemic out. Industry actors like Champignon Brands Inc. (CSE: SHRM) may be hoping that the pandemic quickly comes to an end given that the marijuana industry already had its own growing pains.
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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