I’ve reached the stage in my life where change is more often regarded with a begrudging nod rather than a full embrace. Like my hero, comedian George Carlin said towards the end of his career: “Just when I discovered the meaning of life, they changed it!”
The way I see it, change is like a see-saw. There are ups and downs, whether it is a technological or cultural change. Take smartphones for instance. As an editor and lover of words, it stings to see people texting away on their smartphones with what now passes as human communication -- ROFL, OMG, LOL, LMK, ILY, IMHO and of course the heartfelt ABTA (look it up). On the flip side, some social media platforms, despite their susceptibility to bad actors, can be a vehicle for good when serving as the impetus for social change.
Perhaps no cultural shift has been as bold a harbinger of social change in the last decade as the normalization of cannabis legislation at the states level. This past month, Michigan became the 10th state to legalize recreational marijuana, while Utah and Missouri voted to legalize medical marijuana joining 31 other states that have already done so. According to several industry reports, the marijuana industry will create an estimated $28 billion-$34 billion economic impact this year. By 2022, that could soar past $75 billion annually.
I saw firsthand just how dynamic this industry really is when I attended the MJBizCon National Marijuana Business Conference & Expo 2018 in Las Vegas last month. Billed as the largest business event in the cannabis industry, it rivaled the ISC West show in the number of booths and attendees. While expansive in vendors touting everything from soil fertilizer and grow-lights to designer display cases and fancy retail containers, along with a plethora of millennial man-puns and VCs sporting $5,000 Brooks Brothers suits, it was woefully short on security solutions.
With any burgeoning industry sector comes a need for security. The changing cultural fabric that has inspired such growth and huge potential revenue for the security industry comes with a downside. While big money may await some solutions providers, those who choose to enter the cannabis security market are finding it creates banking, regulatory and security nightmares since it is still illegal at the Federal government level and is an all-cash business model.
According to Tony Gallo, managing partner of Texas-based Sapphire Risk Advisory Group in a recent with Marijuana Business Magazine, “The cannabis industry is really not that unique. If I took a dispensary and put jewelry in there, it’s really not that different.”
Gallo continued in his interview with MJBiz that each security project is so different it is almost impossible for a security consultant, systems integrator or technology vendor to provide a plan that fits all. He says that a typical grow facility should budget between $80,000 to $100,000 for security and the retail side of the business around $40,000.
Talking with Ryan Schonfeld, the founder/CEO of RAS Consulting and Investigations following his session at the recent CONSULT 2018 Security Symposium in Nashville, he indicates that there is plenty of work for any security-minded professional who is not risk-averse.
“But like any new and budding industry I'm finding that there's a lot of people working in our space that are giving bad advice that don't understand the technology,” says Schonfeld, amused by his pun. “They don't understand the implications of the regulations and how the technology fits into that, so I'd love to see some more professionals in the industry.”
Schonfeld admits that the stigma of working in what some consider a rogue business keeps the competition light, but he realizes that will not last long once the Feds figure it out. “Yeah, it is sort of weird going to a security conference and being introduced as the ‘Weed Security Guy’. But that’s okay. This is a massive emerging market.
“The frustration with the regulations is kinda like you're riding on a loaded freight train, going down the tracks, and trying to build the tracks in front of you as you're rolling. The states are figuring it out as they go. Several are using Colorado as a model, but Colorado hasn't even gotten everything right. So as the regs change, so does your design for security, even the construction of the facility, or your video retention or what you have to do with the video.”
Coming to grips with change is a normal process, albeit an uncomfortable one at times. For security professionals like Schonfeld, realizing you are working in a tumultuous business environment encourages flexibility and a quick pivot.
“I know cannabis is here to stay. It's too mainstream and widespread, it's not going away. It may change and evolve and I hope it does, but it's a real industry.”
