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Facing Tariffs Head-On: How Accelerant Manufacturing's US Automation is Reshaping Pre-Roll Economics

Facing Tariffs Head-On: How Accelerant Manufacturing's US Automation is Reshaping Pre-Roll Economics

For years, the cannabis industry has been reliant on overseas manufacturing for essential components like pre-roll cones. This dependency has made businesses vulnerable to a host of external factors, including international tariffs, rising costs, and unstable supply chains. Accelerant Manufacturing is confronting this challenge directly by championing a strategic shift to domestic manufacturing and automation, fundamentally reshaping the economics of pre-roll production.

The Problem with Foreign Sourcing

The traditional model of sourcing pre-roll cones from countries like China has exposed cannabis operators to significant financial and logistical risks. International tariffs can dramatically increase the cost of goods, squeezing already-tight profit margins. Additionally, long shipping times and global shipping disruptions can lead to costly production delays, creating a cascade of issues down the supply chain. This reliance on manual, foreign labor also leaves companies with less control over the quality and consistency of their final product.

Accelerant's Two-Pronged Domestic Solution

Accelerant Manufacturing is offering a powerful, two-pronged solution to these challenges:

  1. Domestic Manufacturing: The company recently opened a new 110,000-square-foot facility in Iowa to produce pre-roll cones in the United States. By manufacturing domestically, Accelerant eliminates the risks associated with international tariffs and provides a more reliable, efficient supply chain for its customers. This move not only ensures a stable source of cones but also shortens lead times and lowers shipping costs.
  2. Advanced Automation: Accelerant's "Production as a Service" (PaaS) model further reinforces this domestic strategy. They provide their state-of-the-art automation equipment, such as the PRO2™ pre-roll machine, to clients without the high upfront capital expense. This model, which charges based on output, incentivizes efficiency and ensures that companies are always using the most up-to-date technology. The automation provides a level of precision and consistency that manual methods cannot match, reducing waste and improving product quality—directly impacting a company's bottom line.

By combining domestic production with their innovative PaaS model, Accelerant Manufacturing is creating a resilient and scalable pre-roll ecosystem. This strategic approach helps cannabis companies mitigate risk, increase profitability, and build a more reliable foundation for long-term growth in the competitive and ever-changing cannabis market.

To learn more, read the full article here: Facing Tariffs Head-On: How U.S. Manufacturing and Automation Are Reshaping Pre-Roll Economics

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