Medical Cannabis Creates Economic Opportunities for Support Industries

A Frederick News-Post article (2016-09-04) reported that Maryland’s burgeoning medical cannabis industry poses economic opportunities for the businesses and services needed to support it. The article highlighted the decision of Frederick-based Stulz USA to expand its production of atmospheric control units for data centers to include medical cannabis growing and processing facilities. From the article:

Stulz USA, which is headquartered in Frederick, has started manufacturing air conditioners, or atmosphere control units, for facilities that grow medical marijuana. …

“We fell into it,” said David Meadows, Stulz’s applications engineer manager. “After we fell into it, we decided, well, we’re going to go ahead and attack this as a vertical market and see what kind of traction we get with this.”

Stulz manufactures cooling and dehumidification systems for data centers. …

Meadows said the company will continue marketing the product as medicinal marijuana is legalized in more states. Company officials think business will hit a plateau, likely related to state regulations and demand for the product.

The article also described Anne Arundel County Community College Professor Shad Ewart’s class and prognosis on the opportunities created by the medical cannabis industry:

[Ewart] is teaching his fourth semester of “Entrepreneurial Opportunities in Emerging Markets: Marijuana Legalization” and said Stulz is one of many companies that will prosper from the legalization of marijuana.

Ewart said he tells his class not to wait for the competitive growers license, but to think of indirect businesses that support the industry. He compares it to the Gold Rush — people who made the money weren’t those searching for gold, but the ones selling picks and shovels.

“For every job that will be created in this growing or dispensary industry, you will see upward of three to four other jobs that will be created,” he said.

 

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