Security in CA’s industry at a crossroad
Security goes hand-in-hand with the marijuana industry, covering a variety of companies who provide products and services to it. There’s the systems and setup side offering everything from plans, assessments, to security products (safes, vaults, cameras, alarms, etc). There’s the staffing side for in-store guards and transport. At our event in downtown LA on 4/10, we learned from speakers who addressed both sides, and took a look as well at technologies and products from outside this industry with applications for it.
Booming security sector
The security systems and setup side is booming these days – mostly due to the timing of application and licensing in CA. Many companies submitted security plans with applications, and to finalize these plans have moved into purchasing. Terry Blevins, from Armaplex, spoke about best practices and working with companies that have experience in the industry – companies that understand local regulations, and who can help defend security plans for final permitting.
Security sector in retreat
We also noted that while one side of the security sector is booming, another is in retreat: before January 1st, most plant-touching businesses used one trusted partner to transport cash and product, but our new laws introduced Distribution licenses to handle product transport. Effectively, companies that focused their business on transportation have had their business chopped in half. There are difficult times ahead for these companies.
Some secure transport companies have become licensed Distributors. But new Distributors are entering the market, whose focus isn’t traditional secure/armored support, but compliance, tracking, and tax collection and reporting. We don’t know yet whether these new Distributors will have the same skills in secure transport – which our second speaker addressed, focusing on what OmniSentry Security is doing to fill a training gap. We also don’t know whether Secure Transport companies that have become Licensed Distributors will be able to manage compliance and tracking required under new laws.
Many security products used in jewelry stores, drug stores, warehouses, and retail have applications for the marijuana industry, so we looked at products coming in from outside the industry: secure-locking drawers for displays in stores; motion-detecting floors; security film that reinforces store-front windows while adding design; mobile vaults; and finally security fogging solutions that release a fog so dense an intruder is forced to beat a hasty retreat, that has applications in grows, facilities, and retail.
Don’t forget insurance
The best systems and qualified, trained, staff will make our businesses more secure, but we need to recognize crimes may happen. That’s where insurance comes in, and Corey Tobin from Bolton & Company spoke about what businesses need to know about the “fine print in insurance policies” in case something happens.
All presentations from the event can be downloaded at this link.
Our next event in LA on 5/24 is dedicated to the topic of distribution. To join us, REGISTER HERE.