Houdini Lab

Demand for Used Cannabis Equipment Increases Due to Supply Chain Issues

It’s a difficult environment for new and expanding operations in the cannabis industry, just as it is for businesses anywhere else. Companies across the whole cannabis supply chain are having difficulty obtaining the equipment they require to cultivate, process, extract, and package their products for sale.

Extractors, trimmers, and other pieces of equipment from Chinese manufacturers are being held up at overseas warehouses due to a lack of available transport capacity, according to brand representatives. Alternatively, the cost reductions associated with purchasing Chinese-made items have vanished overnight as freight rates have climbed to $20,000 per 40-foot container, erasing the previous savings.


Combined with everything else that has been unraveling in the global supply chain this year, used equipment sales are one of the only feasible options for companies trying to establish and expand their operations.


The availability of secondhand extractors, trimmers, solvent recyclers, and other equipment is the most significant advantage of purchasing used equipment. Because much of the present extraction and processing equipment is built in China, investing in alternative state-side equipment can yield immediate benefits.

There are already multiple online marketplaces for commercial-grade equipment, including Cannabis Tech’s NEW Marketplace, which is now under construction. Our online e-commerce site is built for business-to-business transactions, and it includes every piece of equipment needed to cultivate, process, extract, and package cannabis and its derivatives – including both new and used equipment – in one convenient location.


The price point is an additional advantage of shopping second-hand. Even though large-scale, well-funded corporations may be dedicated to the latest and greatest cannabis technologies, small- to medium-scale businesses might save considerable capital expenditure by investigating what is available on the used market.


Another advantage of purchasing processing and cultivation equipment on the used market that is often neglected is the fact that it has most likely been tried and tested across the whole industry prior to purchase. Someone else will have been the test subject, and a plethora of real-world information about its operation and peculiarities will be accessible for examination before to purchase.


Extensive study will always be required before spending a quarter of a million dollars on an industrial CBD/hemp dryer, but this type of research may be made much simpler by purchasing used equipment. Others will have prepared for you by practicing, perfecting, and troubleshooting. In other words, genuine information is available, rather than sales papers and corporate promises.


It should come as no surprise that even used cannabis dryers, extractors, and decarboxylation equipment are more expensive than they were previously. However, given the current state of the supply chain, it is not surprising that even used costs are higher than usual.

In other words, although the global pandemic has delayed the growth of some sectors, cannabis legalization is moving forward at breakneck speed. Marijuana companies are still scrambling to establish a footing in new regions, such as New York and Maine, which means that new growing, processing, and packaging facilities are being constructed. All of which are in desperate need of new equipment.

However, while there is little information available on price rises for cannabis equipment over the previous year, all other major used marketplaces have seen a significant spike in prices. For example, the cost of a car has increased by as much as 42 percent. This is not good news for other used marketplaces, as previously stated.
In response to the persistent delays caused by the global supply chain quagmire, several cannabis facilities are being forced to rethink their business models and restructure. Used equipment is no longer considered to be the second or third best alternative. It’s frequently the only one available.

When shopping for anything on the secondhand market, a methodical approach is still recommended, and this is true for the used cannabis equipment market as well. It is possible to avoid the problems of buying used equipment by seeking out reliable used equipment dealers and looking for certified refurbished or warrantied secondhand equipment.

There are risks associated with purchasing used cannabis equipment; yet, used cannabis equipment remains one of the few options open to producers wishing to develop or expand their operations. At the absolute least, old equipment will allow manufacturing to begin without the extraordinary and crippling delays that will be created by the supply chain disruption that will occur in 2020.