Marijuana businesses battling with growing demand

Michigan

LANSING, Mich. (WLNS)– New data taken from across the state shows that more than a quarter of people currently, planning or may smoke marijuana, and the growing demand is taking a tough on businesses.

According to the numbers, five percent of people have started smoking once marijuana became legal, eleven percent are planning or may smoke, and twelve percent smoked before it was legal and are continuing to use it.

As demand increases, suppliers can’t keep up.

“There’s definitely not enough license supply out there right now, the state has license a lot more retail establishments than there are growing operations to supply them,” said communications director for the Michigan Cannabis Industry Assocation, Josh Hovey.

Even though there is a supply shortage, once the industry is up and running in Michigan, it could boost the economy.

“We have hundreds of businesses that have been licensed so far, that will employ thousands and thousands of businesses, and they’re taking up abandoned buildings and rehabbing them and revitalizing an area, they’re providing a huge tax base for the state,” said Hovey.

Hovey also added that he wants to warn counties and cities that are banning the sale of recreational marijuana.

“They’re essentially encouraging the black market and that’s what the whole prop one ballot initiative was designed to eliminate is the black market,” said Hovey.

Hovey added that the fast growing business is dependent on the state.

“We definitely have the opportunity to expand in Michigan and for businesses to come online and add more jobs and more tax revenue for the state, but the question is how fast can the state license these businesses and get them operational, that’s the big question,” said Hovey.

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