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The truth is, some hemp-based CBD manufacturers won’t make it. While the larger public companies with reserves of cash have the best shot at surviving, they’re undoubtedly feeling the pains of the coronavirus hemp industry impact.
So who and what is most at risk when it comes to private label hemp manufacturers and their products? Cheap Chinese-made vaping components are going to be the first to experience a shortage.
Finding a hemp-based CBD product manufacturer who isn’t importing their raw materials is now the top priority for budding CBD brands.
Meaning Spring Creek Labs customers are in a good position. From gummies to lotions, a diverse inventory can help ensure retailers won’t be left with empty shelves during shortages.
Because they’re also a CBD oil manufacturer, brands can craft their products with added CBD oil.
While they are a private label hemp manufacturer offering a one-stop service, buying oil on its own can save some companies some much-needed capital for branding and other costs.
Investors Are Terrified
While it’ll be a great time to buy into some companies on the cheap, investor funds for new companies are drying up faster than a lake with a hole in it.
Capital is scarce making investors wary of throwing down cash right now.
“We’ve been getting a lot of calls from what I’d call professional Wall Street investors who were looking for interesting trades over the last month,” says Mitch Baruchowitz, a managing partner at a top investment firm in NYC, “and I think the coronavirus kind of took the wind out of those sails.”
But Baruchowitz isn’t worried about COVID-19 slowing the hemp industry down to a stop. The virus is just one more obstacle the private label CBD manufacturer industry has to overcome.
With 25% growth year after year, the virus is causing less uncertainty than one would think.
The upside is industries around the globe are taking a second look at their supply chain. The age of blindly ordering cheap goods from overseas without a second thought is over.
Will there be a shortage of equipment necessary for a business to stay strong? These are the tough questions players in the hemp industry are asking themselves.
Imports Are Going to Be the Biggest Issue
Spring Creek Labs isn’t as vulnerable to shortages as US-based CBD manufacturers who rely on Chinese suppliers for the bulk of their production.
The Colorado-based CBD farm, lab, and private label powerhouse is ready to handle the influx of direct to consumer brands that can tout social distancing as a plus to buying their products online.
With a low MOQ of just 250 pieces, Spring Creek Labs is a US-based Hemp Manufacturer at a time when it’s all-American or nothing.
About Spring Creek Labs
Spring Creek Labs is a US-based CBD manufacturer with over ten years experience farming, manufacturing, and packaging CBD products. Their process includes 100% USA-grown hemp with advanced extraction methods. They offer 100% farm-to-shelf products, including capsules, creams, lotions, powders, and gummies. Spring Creek Labs offers private label products for retail and contract manufacturing.
