As cannabis markets continue to open and evolve around the world, one lesson is consistent: companies that scale efficiently while preserving their team culture outperform those that don’t.
From North America to Europe, Latin America to Asia, operators are experimenting with automation to stay competitive. Machines now touch nearly every part of the supply chain from cultivation to processing, manufacturing, packaging, and retail. The motivations are clear: improve margins, meet growing demand, and reduce the monotony of repetitive tasks.
But with automation comes a critical set of questions. Will technology replace people? How will operations know when it’s the right time to automate? What can global peers teach American operators about building resilient organizations that don’t lose their identity while they scale?
Why cannabis operators worldwide are accelerating automation adoption
Wherever cannabis is legal, companies are learning manual systems can take them only so far. Labor costs are high, margins are thin, and consumer demand evolves quickly. Automation offers operators relief by creating consistency. It also reduces bottlenecks and frees up staff to work on higher-value tasks.
The experience isn’t uniquely American. In Canada, for example, automation became a lifeline as companies faced price compression and needed to reduce costs without sacrificing compliance. In Germany, where adult-use legalization began rolling out in 2024, operators already are eyeing automation to meet anticipated demand and align with GMP standards.
In Latin America, where countries like Colombia are building for export, GMP compliance and traceability push producers to adopt automated systems earlier, even in markets where labor is less expensive. In Asia, Thailand’s rapid expansion of dispensaries after decriminalization in 2022 demonstrated how quickly demand can spike. With recent policy reversals, operators saw how fragile manual systems can be under regulatory whiplash.
No matter the geography, the story is the same: Manual labor can’t scale forever.
How automation reshapes workforce skills in cannabis manufacturing
One of the biggest fears about automation is job loss. But in practice, many operators report the opposite: automation often broadens team skills and creates new opportunities within more agile workforces.
Take pre-roll production as an example. Hand-filling and rolling is one of the most labor-intensive, repetitive jobs in the industry. When machines take over the bulk of that work, the same staff can be retrained to manage packaging, quality control, research-and-development support, inventory management, compliance, or even machine operation. Instead of seven people performing the same motion all day, one operator oversees a machine while others move into new and expanded roles that drive revenue.
We already see employees embracing these shifts. In North America, for example, we’ve seen machine operators adding “automation technician” or knowledge of a specific machine to their résumés, essentially treating that training as a technical credential. That builds long-term career value.
Strengthening cannabis company culture through automation and training
Rapid growth can erode culture if people feel like cogs in a machine. A disengaged team can undermine efficiency gains faster than any machine can produce them, so successful operators look at automation with a people-first philosophy. This includes:
- Cross-training staff. No role should exist in a silo. At least two to three people should understand each machine or process. This reduces bottlenecks and knowledge gaps and builds confidence across the team.
- Offering progression. Employees are more loyal when they see a future path (such as learning new equipment, moving into different departments, or earning certifications), not just incremental pay raises.
- Recognizing technical expertise. A “machine operator” isn’t just a button-pusher; the role actually requires skill. Whenever an employee is operating a sophisticated piece of equipment, revenue is on the line. Acknowledging that builds pride and reinforces culture.
Why flexible, modular automation systems matter for cannabis production
One of the most important lessons we’ve learned at Hefestus, across all the industries and markets we serve, is that buying rigid equipment is a risk because of how quickly consumer preferences and regulatory standards shift.
In pre-roll production, for example, the demand for different formats evolves rapidly. Consider how quickly consumers demanded dogwalkers, infused joints, and diamond-dusted coatings. In cultivation, lighting strategies constantly are shifting toward efficiency and greater productivity. In retail, point-of-sale systems must constantly adapt to compliance changes, and artificial intelligence is changing how they operate.
Operators who buy automation for today’s trend may find it obsolete in two years. That’s why cannabis leaders prioritize flexibility and modularity. They focus on systems that can adapt to multiple product formats, integrate with new compliance rules, or scale up output without replacing the entire line.
This approach also strengthens internal culture: When employees know the equipment they’re learning today will still be relevant tomorrow, they invest more fully in mastering it.
When to automate cannabis operations for scalable growth
Timing matters. Investing too early ties up capital that could be spent more profitably on brand-building or market entry. Waiting too long risks being outpaced by competitors who can produce at higher volumes and lower costs.
Here’s a practical framework, adapted from our experience with operators and pre-rolls.
- Small scale: Under 10,000 monthly units (whether pre-rolls, gummies, or tinctures). Manual systems usually are sufficient.
- Mid scale: 10,000–50,000 units monthly. This is the gray zone. If you’re constantly adding labor but still falling behind, your operation may benefit from automation.
- Large scale: 50,000 or more units monthly. Automation is essential. Manual processes cannot keep up with demand profitably at this stage.
A more general rule of thumb for all types of processes is this: If you’re constantly chasing production, struggling to expand capacity, or feeling like your team can’t keep up no matter how much labor you add, automation deserves a serious look.
Global cannabis automation trends: market-by-market snapshot
- Canada is a mature market where automation is standard. Companies that waited too long to automate lost share to early adopters.
- The United States is fragmented by state regulations and home to some of the most competitive markets in the world. In most state markets, automation becomes essential once operators scale into tens of thousands of units per month. Multistate operators, in particular, rely on automation to maintain consistency across markets while also managing cost pressures.
- In Germany, with adult-use reform unfolding, automation is seen as essential to meet demand while satisfying strict GMP requirements.
- Thailand is a cautionary tale of volatility. Automation investments made during rapid expansion were disrupted when new rules restricted recreational access.
- Colombia is an export-focused market where compliance and traceability push producers to adopt automation earlier, even in low-cost labor environments.
- South Africa is an emerging cultivation hub where automation is tied to export ambitions but systems must adapt to infrastructure challenges like inconsistent power.
- Australia and New Zealand are taking a cautious, medical-first approach. In Australia, highly regulated facilities are adopting automation to ensure GMP consistency and prepare for export markets. New Zealand’s smaller but tightly controlled medical sector is following a similar path, with operators investing in precise, automated systems to meet pharmaceutical-grade standards and differentiate in niche export channels.
Together, these examples show automation is not one size fits all. Local regulations, consumer demand, and infrastructure realities all shape the decision to automate.
While automation undoubtedly is a benefit for those who are ready to scale, no machine runs flawlessly. Savvy operators emphasize the importance of planning for downtime before it happens. The best systems come with spare parts, training videos or hands-on training, and proactive maintenance protocols (and a smooth customer experience from the vendor). More importantly, staff should be trained to troubleshoot issues in real time. Instead of waiting for service calls, trained team members can adjust settings, clean components, and keep production moving. This builds resilience both operationally and culturally. Teams that feel confident handling breakdowns are more engaged and less anxious about technology. In many ways, resilience is the hidden return on automation investment.
Key automation takeaways for cannabis manufacturing leaders
Looking across global peers, three lessons stand out for executives preparing to scale:
- Automate for agility, not austerity. Machines should eliminate repetitive tasks so people can focus on higher-value work.
- Buy for tomorrow’s market. Flexible systems protect against shifting trends and regulatory changes.
- Pair automation with career growth. Retention improves when staff see automation as a path to new skills and opportunities.
At its best, automation doesn’t undermine culture but instead strengthens it. Operators who succeed globally are those who scale smartly and treat automation as a tool for both productivity and people.
A quick guide for operators exploring automation
When does automation become worth the investment?
Automation typically becomes valuable when production consistently exceeds 10,000–50,000 units per month or when adding labor no longer solves bottlenecks. If your team is constantly catching up instead of staying ahead, automation deserves a closer look.
How does automation affect workforce development?
Automation doesn’t eliminate roles; it elevates them. Operators who retrain staff to manage equipment, troubleshoot issues, and cross-train across departments build a more resilient, confident team with higher retention.
What should operators prioritize when selecting equipment?
Flexibility matters more than raw speed. Look for modular systems that can shift between formats, accommodate new compliance rules, or scale output without replacing the entire line. Equipment that keeps pace with evolving trends protects both your budget and your culture.
How can teams reduce downtime and prevent disruptions?
The most efficient operations plan for downtime before it happens. This includes structured maintenance, spare-parts access, hands-on training, and empowering staff to solve small issues in real time. Resilience — both operational and cultural — comes from preparation, not reaction.
Shahar Yamay is chief executive officer at Hefestus USA, a division of family-owned technology firm Hefestus Group. For more than three decades, the Israel-based parent company has provided the international food industry with innovative automation solutions, recently incorporating robotics and artificial intelligence. The U.S. subsidiary, based in Nevada, continues the family tradition for the cannabis industry.
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