Sunday, August 18th, 2019

Colorado Cannabis Industry Contributes More to Economy Than All Other Industries: Report

Published on November 6, 2016 by   ·   No Comments

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Justin Gardner

The Colorado cannabis industry has quickly gone from bud to full flower, as indicated by a new in-depth data analysis by the Marijuana Policy Group.

Using a new “Marijuana Impact Model” they say is the first to “accurately characterize how this industry impacts the overall state economy,” the researchers confirmed the astounding positive impact that legalization has brought upon Colorado.

Legal cannabis activities generated an output of $2.39 billion in 2015, with almost $1 billion in sales for the year. The sales represent a 42.4 percent increase from the previous year, translating into a staggering 112 metric tons of buds and 132 metric tons of “flower-equivalent” products (edibles, concentrates, etc.).

Cannabis now ranks number six in terms of product sales, following closely behind cigarette sales. It beats gold mining by a large margin, and even performing arts and sports venues as well as all non-grain crop farming.

However, the real impact is seen when put in terms of “output and employment per dollar spent,” where spending in the cannabis industry outperforms all private industries in Colorado – including coal and other mining, oil and gas, casinos, business services, general manufacturing and retail trade (incl. alcohol).

Each dollar spent on retail cannabis generates $2.40 in state output, while cannabis manufacturing follows with $2.34 and cannabis cultivation comes in at a close $2.13. Combining the three, cannabis is generating far more than any other entity, including federal government spending.

Much of this has to do with the fact that the Colorado cannabis industry operates almost entirely within the state, due to continuing prohibition in other states.

There is equally impressive news in the jobs sector, where legal cannabis created more than 18,000 jobs in a year.

Legalization of marijuana created 18,005 fulltime equivalent (FTE) jobs in 2015. Among those jobs, 12,591 were employees directly involved with the marijuana business — either in stores and dispensaries, cultivations, or infused product manufacturing operations. The remaining 5,414 full-time equivalent positions were generated by intermediate input purchases made by the cannabis industry for general business goods and services, and through general spending by marijuana industry employees and proprietors.

Security guards comprise a significant portion of these indirect jobs, due in large part to the fact that the industry is still being forced to operate on a cash basis — because of asinine banking prohibitions by the federal government and the Federal Reserve.

This isn’t stopping entrepreneurs and other productive individuals from taking advantage of the new, wildly popular market. Legal cannabis is having profound effects in many other industries, including commercial real estate, construction, and a raft of business services.

The cannabis industry itself is growing at a faster pace than any other sector, at an astonishing 42.4 percent. Colorado’s general economic growth is at 3.5 percent and the U.S. average is 1.75 percent.

Read More HERE

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