Sourcing Cost Effective, Quality Used Equipment for Cannabis Manufacturing and Packaging

Image Source: Capna Systems


No one can deny that the cannabis industry is one to watch. With an estimated sales potential expected to increase from $17.1 billion in North America to $47.3 billion by 2024, the cannabis industry is poised to boom. The District of Columbia and 11 states have legalized recreational use of marijuana: Alaska, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont and Washington. 33 other states have legalized medical marijuana use. Canada has legalized marijuana use across the entire country. Cannabidiol, the non-intoxicating cannabinoid found in cannabis also referred to as “CBD”, is garnering significant research and development efforts for many different alternative health uses and products. Marijuana-based pharmaceuticals are starting to be approved by the FDA. As more states legalize use, more uses for marijuana and CBD are developed, and even FDA approvals increase, the competition for manufacturing resources may be fierce.

May 2020: Phase II: Auction of Equipment from a Major Cannabis Company

Anyone looking to compete in the marijuana and CBD manufacturing business will need to secure process and packaging equipment necessary to produce these products on a commercial scale and with the expected quality. Main categories for cannabis manufacturing equipment include:

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Used process and packaging equipment for the marijuana and CBD industry can fill an immediate and growing need for manufacturing equipment. Sourcing used manufacturing equipment for your marijuana manufacturing operation can help reduce start-up costs. You will save money on the purchase price versus new equipment. You will save weeks or even months of lead time on the delivery of the equipment. Used equipment often comes from the top equipment manufacturers which means they are generally built to produce high-quality, pharmaceutical-grade products. They are more robust in design and construction and there is ample access to parts and service. The key to sourcing used equipment is finding the right supplier.

We will be exhibiting at the 2020 Natural Products Expo West trade show in Anaheim, CA from March 4-7, 2020, booth #4482. Over the years, we’ve experienced an increased presence of hemp and CBD manufacturers at the show.

Here are education sessions about the industry to not miss at the 2020 show:

      • Natural Products Hemp & CBD Summit
      • Cannabis Sativa L – Overview of US & Canadian Legal & Regulatory Landscape
      • Hemp Expert Panel & Consultations
      • CBD Power Panel: Industry Experts Discuss CBD Shopper Insights, Retail Strategies & Consumer Education
      • An Expert’s Guide to CBD in 2020
      • Hemp and Wild Oregano: Latest Research and Historical Uses
      • Top 10 Things to Know About Selling CBD in 2020
      • CBD – Does This Sh*t Even Work? The State of the Evidence for Safety, Benefits, and Clinical Applications

Consolidation within the pharmaceutical manufacturing industry and several blockbuster drugs losing patent protection means that there are inventories of high-quality equipment available for sale that are perfect for new marijuana and CBD manufacturers. The right used equipment dealer has built a network of pharmaceutical companies with surplus equipment for sale to create a pipeline of equipment available from top pharmaceutical equipment manufacturers. They have a vast inventory of process and packaging equipment on hand and available for inspection in their own warehouses. They can help you locate just about all the research & development, testing, and production and packaging equipment you need including relationships with the original equipment manufacturers. The ethical used equipment dealer also knows to avoid contaminated equipment which can cause serious liabilities for anyone who may not know whether equipment is contaminated and should not be used in their operations.

Federal Equipment Company is in the unique position to offer services that include equipment decontamination, expert evaluation of equipment, and training and troubleshooting for manufacturing of solid-dose products and formulations. With over 8,000 items available on any day on as well as a pipeline of deals and liquidations, we know what equipment is available and where (even if that equipment is not listed on!).  We offer equipment across more than 275 different categories to provide you with just about any piece of used production or packaging equipment your cannabis manufacturing operation would require.

There is no doubt that the cannabis manufacturing industry, including the manufacture of marijuana-based products and CBD products, is not slowing down anytime soon. There is a boom of start-ups competing for resources. They are looking for the best equipment for R&D, manufacturing and packaging. They are paying high purchase prices along with long lead-times for new equipment. Used equipment for the cannabis manufacturing and packaging industries will save both time and money while also helping to produce a higher-quality product.

About Federal Equipment Company:

Federal Equipment Company is a reliable resource for used processing and packaging equipment in pharmaceutical and cannabis with over 60 years of expertise buying and selling machines. For companies with surplus equipment, Federal Equipment Company takes away all the headaches of asset management. We bring deep knowledge of equipment values that support accurate appraisals and advise you on a range of options to optimize the value you recoup. We also offer cash liquidity and fast, expert removal of individual pieces to entire lines – protecting your facility. Acquisitions from reputable companies support a large, on-hand inventory of reliable equipment manufactured by leading OEMs. This enables fast turnaround, and our market knowledge ensures you buy and install exactly what you need. We also offer expert training & troubleshooting for solid dose equipment.

About the Author:

Mike Coyne started his role in Business Development at Federal Equipment Company in 2013 and is involved with buying and selling of surplus equipment. Before joining the team at Federal Equipment Company, Mike handled the sale of surplus assets for Fortune 500 companies. Mr. Coyne has earned a bachelor’s degree in communications with a minor in Business from Ohio university.

Visit us at this year’s Natural Products Expo West show, booth #4482.

About the author

Matt Hicks

Chief Operating Officer & Counsel, Federal Equipment Company

Matt Hicks, Chief Operating Officer at Federal Equipment Company, is a pharmaceutical industry veteran with more than 15 years of experience helping companies get the most value and utility out of their manufacturing and process equipment assets.

By Matt Hicks

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