As the coronavirus pandemic continues to surge throughout the country, the industrial hemp industry is feeling the effects like everyone else. There have been many different cases of stores closing, suspending operations, canceling events, and laying off workers during these trying times.
Let’s take a look at some of the changes that companies are having to make right now.
Shifts in focus
With many retail locations unable to remain open, online sales are becoming more and more important to keep companies afloat. Companies that were looking to open new retail locations are holding back and existing stores are fighting to stay open and keep their customers safe.
For retail suppliers, the immediate effect of this is on wholesale purchases as stores look to have fewer items on their shelves that they may not be able to sell.
Overall reports from multiple companies indicate lower sales numbers for brick and mortar locations, while online sales are increasing. They expect this trend to continue as more people are homebound. The urge to stock up is also influencing buying decisions for consumers.
Supply chain problems
Most companies operating in the U.S. source their products domestically. So for the moment, there isn’t a huge problem with supply chains becoming broken as international borders shut down.
This may change, however, as states start to clamp down on interstate travel. Hot states that have the most cases are being watched, with some states placing a full 14-day quarantine for people traveling from places like New York or Washington. As the chokehold tightens, it is going to become more difficult to move products across the country.
For other supplies that don’t include hemp, problems are starting to pile up. Companies are having to plan farther ahead as they are now unable to get air freight from suppliers in Europe. Having to wait for freight to be delivered by boat is proving difficult.