In January, we wrote about combatting supply chain delays for cannabis brands. In early 2020, COVID-19 took its toll on supply chain management - from port congestion to increased shipping costs to factory shutdowns and volatile material prices - we quickly took steps to mitigate the challenges that arose. At the beginning of 2022, we began holding domestic inventory for our most popular products providing our customers with low minimum order quantities and fast shipping within 14 days to the U.S. and Canada. Today, we’re happy to announce we’re bringing production home to North America. 

How nearshoring will benefit your brand

With over 5+ years in the cannabis industry, we have been conscious of the benefits of nearshoring for our customers. Setting up production in North America was a no-brainer to reduce costs and delivery lead times. 

Combatting freight lead times and cost volatility

Rising fuel costs and the inevitable freight burden have been challenging at times. While in most cases, we can work quickly to produce high-quality cannabis packaging from our manufacturing partners in Asia, the option of manufacturing in North America brings a number of advantages. We can hedge against the volatility of fuel prices and freight lead times. Lower freight costs and faster delivery times support our customers in reducing their costs and offers speed to market.

Relief from US-China Tariff

In 2018, the U.S. introduced a tariff on China imports. The additional cost of 25% in tariffs on China imports has been an undesirable burden on top of pre-existing import taxes. Producing our goods in North America eliminates the US-China tariff, enabling us and our customers to take advantage of the USMCA (United States-Mexico-Canada Agreement).

Reduction in carbon emissions

Producing and shipping goods from within North America will consequently reduce the total distance traveled compared to shipping goods from Asia. Our primary ocean carrier, MSC actively engages in its own carbon neutral programme, nevertheless, shipping within North America welcomes a positive reduction in fuel demand and carbon emissions. 

What can we produce in North America?

We are capable of producing a selected number of products with our North American manufacturing partners including CR Bags and flexible and rigid Paper Boxes. No significant tooling is required which means faster execution and low capital investment.