20I7 started off with a bang – states that voted to legalize medical or recreational cannabis began the process of regulation development, license applications and compliance; Donald Trump was inaugurated as the 45th President; and revenue numbers began to come in for 2016.
It’s projected that by 2020 more than a quarter of a million jobs will be created in the legal cannabis market. That exceeds the number of jobs projected for the manufacturing, utilities and government sectors. Each of those new employees will need to be paid, so payroll can be an issue for some employers. Many of these jobs will be in small grows, processors or dispensaries. Without the luxury of full departments to handle these administrative chores, the owner is left to manage each of these processes in addition to everything else that goes into running a business. Why not outsource? Witlon has developed a PEO system that provides payroll administration, benefit services (Health, 401k, Life and Disability insurance), as well as paychecks with Witlon on the W2 which allows employees to get bank accounts and loans versus receiving a check from a discriminated against cannabis company. We can help!
As expected, Jeff Sessions was confirmed as Attorney General earlier this month. His view on cannabis is well known. However, In Colorado, California, and other legal marijuana states, Sessions’ confirmation doesn’t appear to be slowing investment in the industry. In fact, this year 27 state legislatures are considering bills pertaining to cannabis in some form. That means more revenue, and more importantly, more tax revenue for states. According to Frontier Data, the legal cannabis market was worth about $7.2 billion in 2016 and is projected to grow at an annual rate of 17%, which equates to more than $24.5 billion by 2020.
Looking ahead to 2017, Forbes Magazine predicts that the demand for craft marijuana will see major growth in the next year. From organic-forward features to celebrity endorsements; marketing, branding, and packaging will rule the industry in 2017.
I am encouraged by the states’ efforts to continue to develop and implement successful regulatory models and look forward to contributing to the growth and success of the industry.
Nicholas Murer, President and CEO