Right here's Why Corona Virus Outbreak Can Disrupt Weed Vape Trade – firebird-cbdoil
The outbreak of the corona virus continues to spread across China and has infected more than 42,000 people since December last year, causing at least 1,000 deaths. To prevent the virus from spreading, at least 24 different regions of China had to shut down companies and factories for several weeks. This temporary work stoppage, in turn, has drastically affected the supply chain of technical products on which many American companies depend.
The vape industry is likely to be affected by the lack of products made in China. Most U.S. vaporizers are largely a hardware company and are made in China. Virtually every element of a vaporizer, including batteries, plastic or other raw materials, electroplating or other surface treatments, as well as empty vapourcarts, comes from a Chinese factory. In most cases, cannabis oil itself is the only product made in America that gets into the vapor.
"The corona virus has a significant impact on the entire manufacturing supply chain in China, which will be felt in the coming months," Richard Huang, CEO of California-licensed vape maker Cloudious9, told Marijuana Business Daily. "It could be a very difficult year for hardware companies trying to keep inventory levels constant."
Arnaud Dumas de Rauly, CEO of New York vape company The Blinc Group, said: “If several key raw material suppliers close suddenly or their deliveries are several months late, this will jeopardize our timely performance. De Rauly also noted that the travel restrictions imposed by the Chinese government are preventing some of his team members from visiting the factories where these products are manufactured, leading to further delays.
The supply chain restrictions caused by this outbreak are likely to affect both legal and black market vape producers. Licensed vape manufacturers in the United States and Canada source Chinese products that meet government regulations for safety requirements and pollutant testing. Illegal producers, on the other hand, can buy cheaper, untested products to use in their black market weed vapes.
Slowing down the production of these cheaper products could be good news. Many Chinese companies not only produce legal waste, but also imitate legal products, and some of these illegal wastes have been found to contain pesticides, heavy metals, or other contaminants. Recent evidence also suggests that the outbreak of vaping-associated lung disease (EVALI) in the United States could be caused by contaminants in these illegally produced vapes.
However, the EVALI outbreak can actually mitigate the blow caused by the coronavirus outbreak. When concerns about the steam-borne disease arose last fall, sales of legal weed waste began to decline and several states immediately banned these products. Because of these factors, some North American legal weed traders have an oversupply of steam products that may hold them back until production resumes in China.
Coronavirus can also take a toll in other areas of the cannabis industry. Even cannabis growers who grow their crops on American soil still use products made in China, including greenhouse frames and light sources. Cannabis packaging and extraction companies are also heavily dependent on Chinese technology.