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Learn How Your Grow Room Materials Can Affect Your Yields & Profits

Being successful in the horticulture industry means keeping up with the massive demand and required grow yields. It can be easy to forget that all the elements you use to grow greatly affects your yield, and your profits. Besides grow room materials such as vertical grow racks, increasing profits (see exactly how much money you could be making here) the trays, inserts and tables all play a part in your grow operations. Consider how these implementing these items can affect your grow yield.

Our Grow Room Materials

Veg Tables

It’s all in the tables! By using vertical grow tables you are able to reduce your environmental footprint by utilizing less space and allowing more plants to grow. Operators often are looking for a solution to grow in areas without adequate growing space. In most cases we are able to double or triple a grower’s productivity in their existing space by implementing these tables. Now that’s how you grow!

Bloom Tables

In order to maximize your grow operations you need to ensure your bloom tables meet demands of large-scale commercial horticulture. Bloom tables are designed to maximize your flowering space and increase revenue. After integrating a multilayer grow system you can increase productivity by 100 percent or more. Pretty amazing right? Our tables are designed to integrate with any growing style from soil bed to ebb & flow. Lack of space may have you looking for new real estate to increase production. Wait! Before you go off looking for more space, consider whether a multilayer grow system can provide that increase in production you’re looking for.

Drainage Inserts

Drainage inserts work together with bloom and veg tables to allow for proper drainage and air circulation beneath pots. We offer anti-microbial and anti-fungal drainage inserts (white). Made in the USA of high density polyethylene, inserts can be easily removed for quick cleaning and sanitation.

Mobile Vertical Grow Racks

No where to go but up! Greenhaus provides mobile vertical grow racks through our industry leading partner, Pipp Horticulture. We integrate a carriage and track system to create even more efficiency by eliminating permanent aisles. We will work with your architects and engineers to determine if this is an option for your project.

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How To Calculate Your Grow Room Setup Costs & Yield Revenue

Importance of Calculating Setup Costs

Commercial cannabis growers and investors are running a tight business. Inputs must be tracked closely to ensure the business stays profitable and sustainable. It’s tempting to start a buildout right away to minimize idle time and skip the important questions of how much does a grow room cost. However, taking the time to use a grow room cost calculator and then detail the budget and estimates for the buildout will ensure the project goes smoothly and that finances are in line with expectations. With construction, there is always some variation from the plan. A contingency allowance for unexpected expenses acts as a financial safety net. The amount of this allowance is dependent on the scope of the build out but usually it will not exceed 10% of overall costs.

Top 3 Costs in Building Out a New Cultivation Space

  • Planning + Drawings: Invest in architectural drawings and work with engineers who will handle the county and city permits. This stage is the most important as it can greatly impact the timeline and scope of your project.
  • Lighting: If you choose to invest in LEDs and vertical racks, the lighting equipment costs will be high upfront. The energy, electricity cost, and space efficiency will make up for it in the long run, but it’s one of the top upfront expenses for the buildout.
  • Grow Equipment: Pipp Vertical Racks, plumbing, ACs, dehumidifiers, the list goes on. Preparing all the equipment, tools and supplies for a cultivation facility takes time and plenty of budget.
There are many costs associated with taking your cannabis business to the next level. One of the most important costs you have to consider is commercial cannabis grow room setup cost. Before we determine your exact grow room setup cost and calculate possible grow yields, consider these benefits of vertical farming: High Density and Anti-Microbial Products Pipp’s mobile vertical grow racks can be built up to 56’ long and 23’ high (systems larger require engineering approval). Beams can support up to 2,150 lbs. Uprights can support over 17,000 lbs. Our products have a white powder coat finish that is UV-stable, and contains anti-microbial and fungal-resistant additives. Easy Integration Vertical grow racks are designed to easily integrate with other essential grow equipment like lighting, irrigation, drainage, and airflow systems. This creates a smooth grow operation that is efficient and profitable. Lower Costs By using Pipp Horticulture’s vertical grow racks you deal directly with us because of our factory direct sales channel. We design specifically for you so there are no wasted resources. Pipp’s CAD team will prepare room drawings of your facility, including elevations of the vertical grow systems, to ensure efficient grow space and workflow at affordable rates.

Now Let’s Calculate Your Yields

Click the link below, enter your facilities current canopy space, production metrics, and sales price to see how much revenue you could be making when you upgrade your indoor farm to PIPP Horticulture’s Cannabis grow racks!

CALCULATE HIGHER YIELDS

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Part III: Integration with Advancing Environmental Control Technologies

Part 3: Integration with Advancing Environmental Control Technologies

In the first two parts of this series, we explored numerous advantages of implementing a Pipp Horticulture mobile vertical racking solution in your grow.  We started this series by first looking at the big picture of implementing a vertical racking system: increasing canopy space to reduce and absorb fixed costs.  Cultivators maximize the space they have through the implementation of a mobile vertical racking system, which means either requiring a smaller space initially and allowing for the cost of the cultivation space to be absorbed quicker or by producing substantially more in a fixed amount of space.  Increasing canopy space without increasing square-footage may provide substantial benefit to cultivators operating in states with strict canopy space regulations.  Vertical racking also allows for greater absorption of the burdensome “canopy tax”, based off cultivation square-footage, that some cultivators have begun to face in recent years. In the second part of this series, we took an in-depth look at how implementing Pipp Horticulture mobile vertical racking solutions will lower the initial capital expense of environmental system requirements, as well as long-term energy consumption per gram. Vertical racking systems typically utilize LED lighting, which may have a higher initial cost than HPS lights used in single-tiered cultivations, but the ROI on LEDs is typically faster than HPS, and they may require less maintenance and lower operating costs over time.  Through the use of LEDs, HVAC requirements can be reduced and cost less to operate over time.  Because LEDs emit less heat and require less energy than HPS lighting systems, environmental systems can stabilize quicker, thus reducing the fundamental needs of your HVAC system, as well as costs to operate over time. In the final installment of this series, we are going to explore further the types of environmental systems utilized with a Pipp Horticulture mobile vertical racking solution, and how the technology of each can ensure success when integrated with a multi-tier system.  Pipp Horticulture systems are designed to embrace and integrate with the numerous technological advancements made in terms of lighting, irrigation, and other environmental controls, and utilize an in-house team of experts to ensure the client’s are aware of options to integrate third-party systems and technology to control environment, capture data and drive performance.

Seamless Integration with Environmental Controls

Many cultivators today are implementing automated environmental control systems that capture and utilize data to make minor adjustments to maintain an ideal environment to produce higher-quality, more consistent products. Each microclimate, which may be a tray, grow room, or greenhouse requires different inputs, consistent implementation, and monitoring of numerous environmental variables such as: Temperature and relative humidity – These factors are set, monitored, and maintained through HVAC and environmental control systems.  It is essential to implement a system optimal for growing cannabis, which differs from standard HVAC systems in homes and office spaces. Growers looking to maximize outputs will regulate temperature and humidity to control , a key component of healthy plant growth. Maintaining consistent and optimal temperature and humidity throughout a plant’s life cycle can significantly improve performance and mitigate risk. Lighting – Automated lighting can include timers, sensors, moving methods, and light meters. Systems must be reliable, efficient, and integrate with other environmental controls to provide the optimal amount of lighting required for peak performance. Fertigation and Irrigation – Many cultivators have turned to automated fertigation systems, which are responsible for delivering precise amounts of nutrients to plants, and often integrate with irrigation systems.  These high-tech systems ensure accuracy and efficiency, reduce labor, and increase productivity in cultivations. CO2 supplementation and concentration – Many cultivators supplement their plants with carbon dioxide which, when used correctly, can lead to quicker harvest times and larger yields.  Typically, carbon dioxide is injected into the air and requires distribution with the use of fans or other mechanical systems Carbon dioxide levels should always be monitored to ensure plant health and employee safety. AirflowAdequate air circulation is necessary to create an optimal growing environment. Airflow helps maintain temperature and humidity, prevents mold and pests, and can strengthen stems and stalks promoting an all-around healthier plant.

LED’s: An Advanced and Sustainable Lighting Solution

A significant component of vertical racking systems that requires further exploration is the use of LED lights over industry-standard HPS lighting.  Vertical racking systems often utilize high-density lighting, and because LED (light-emitting diode) lights produce low amounts of heat, making them ideal for close-range applications, and most commonly used in vertical grow systems.  More efficient light uniformity from LEDs allows cultivators to position lights closer to the plants, thus increasing the amount of light that penetrates the canopy and increases yields. Earlier generations of LEDs came up short when compared to HPS lighting; however, in recent years, technological advancements have addressed these shortcomings, and LEDs have come to surpass HPS technologically.  What many cultivators may not realize is that much of the light emitted from HPS lights is waste, as plants do not absorb the unvarying light spectrum they provide.  LED lights can target a particular light spectrum needed for photosynthesis, and by manipulating the range of light the plant receives and delivering that light with high precision, LEDs can improve a cultivator’s yields and cannabinoid concentrations. Automation and control of lighting systems can recreate natural light cycles and control intensity to mimic sunrise and sunset. Not only does the implementation of LEDs in a vertical racking system allow for improvement in plant quality, but it also provides a sustainable and environmentally-conscious solution for demanding lighting needs, as well as long-term savings on energy costs.

Vertical Racking Solutions: Positioning Cultivators for Success and Longevity

Cultivators around the globe are seeing the benefits of implementing mobile vertical racking solutions to augment performance and efficiency throughout the entire cultivation facility.  Not only are space and canopy increased, but there is a direct effect on the company’s bottom line by increasing revenue, providing for greater absorption of fixed costs, and a reduction of COGS as production increases.  Utilizing advanced and automated technologies in areas such as lighting and environmental controls integrated with Pipp Horticulture vertical racking provide cultivators with consistent, controllable, and replicable grow environments.  While some of the cannabis industry is still operating single-tiered cultivations, operators that have implemented mobile vertical systems have set themselves up to remain competitive, maintain market share, and drive down costs while producing a consistent, high-quality, and high-yielding product.

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Part II: Implementing A Mobile Multi-Level Cultivation System in Your Facility

 

Part 2: Lower Energy Consumption Needed to Maintain Environmental Controls

In the second part of this series, we explore another benefit of implementing Pipp Horticulture mobile vertical racking solutions throughout your facility: lowering immediate and long-term energy consumption per gram, as well as initial capital expense.  In addition to increasing canopy space and your bottom line, as discussed in the first part of this series, vertical cultivation simultaneously lowers expenditures on energy, accruing savings into the hundreds of thousands, or even millions, for cultivators over time.  Not only can a vertical cultivation system reduce overhead costs per unit, but through implementation, cultivators can create a more efficient, sustainable and environmentally-conscious platform.

Exponential Energy Costs for Cultivators

In many states with recreational or medicinal cannabis programs, the laws dictate that cannabis must be grown indoors, thus forcing cultivators to replicate essential elements in nature, such as the sun, wind, humidity through their system of environmental controls.  Because of this, cannabis cultivation has become known for the massive mechanical infrastructure and the energy it requires and its effect on the environment, with research concluding that cannabis cultivation consumes up to 10 times the amount of energy as an office building.  Cultivators often see their energy costs accounting for up to 50% of their overhead expenditures, with the majority of those costs spent on lighting and HVAC needs. Unfortunately, many cultivators miss opportunities to be more energy-efficient and cost-effective when designing their grow.  Opting for standard single-tiered designs and lower initial equipment costs cause cultivators to lose countless savings on fixed-costs as well as the opportunity to increase revenue with additional canopy space. Utility companies have now started to incentivize cannabis cultivators to embrace best practices as well.  To prevent overloading of energy distribution systems, utility companies have and continue to develop programs to achieve energy-savings goals for both the utility company and cultivators.  Incentives such as energy-savings opportunity studies, engineering-design analysis, and rebates, are encouraging cannabis companies to reduce their energy consumption as well as environmental impact.  These opportunities are not just reserved for cultivators in the “new construction” phase and typically extend to those retrofitting and remodeling.

Reducing Overhead Through Vertical Grow Applications

Through the implementation of Pipp Horticulture and Greenhaus Industries vertical racking systems, cultivators are saving substantially on their energy costs per gram.  Traditional lighting sources, such as single or double-ended HPS lights used by many cultivators, lack the benefit of being able to be placed in close-range to the plants due to the excessive heat they produce.  The technological advancements made in LED lighting allow them to be fully utilized in vertically-designed grow systems.  The low thermal output from the lights is optimal for vertical cultivation because they can be placed close to the plants without the fear of burning or over-heating them. Lower thermal output of LED lighting also allows for a reduction of capital expenditures and operating expenses associated with HVAC. In addition to low thermal output from LEDs, less energy is needed to operate, and LEDs have a longer lifespan than other lighting used by cultivators.  According to the US Department of Energy, converting to energy-efficient LED lighting allows for an average of 24% to 30% reduction in operating costs, and have even been known to reduce cultivator operating costs as much as 50% long-term.  The LED lights employed in vertical racking systems typically get approximately 50,000 hours of use (over ten years on a 12:12 lighting schedule), where standard HPS lights need to be replaced annually, at least.  Unfortunately, due to established beliefs, lack of institutional funding and higher initial cost of implementing LED lighting, the adoption of the technology has been slow.  Despite the higher initial cost, the ROI of LED lights in conjunction with mobile vertical cultivation is achieved faster, by the significantly reduced operating cost and equipment replacement fees, as well as the additional revenue gained with LED lights and vertical racking. In addition to the considerable amount of energy expended and costs associated with, the lighting needs of cultivators are the ongoing costs to maintain their HVAC system.  HVAC systems, which are responsible for reducing outdoor contamination, as well as maintaining the ideal temperature, humidity and CO2 levels, can account for as much as 50% of the energy costs endured by cultivators.  These systems, responsible for maintaining various environmental controls, reduce a cultivator’s risk for harmful plant conditions, such as mold and mildew.  Technological advancements and energy-efficiency opportunities have been slow to surface regarding the HVAC systems used by cultivators who, when designing their grows, generally use designs from companies lacking cannabis experience, and the knowledge of the intricate environmental controls needed.  Equipment used for standard home and office uses are often employed, and struggle to keep up with the demands of the grow. HVAC systems never stop running and have a consistent demand put on them when they are on.  In single-level grows, each time lights are powered up or turned off, the HVAC system has to work to catch up with the amount of heat being either emitted into or reduced from the environment.  By implementing vertical racking systems using LED technology, the ongoing demand for HVAC controls are spread over increased output.  Environmental conditions stabilize quicker and with greater ease due to the lessened amount of heat distributed from the lights. Utilizing vertical racking systems with LED lighting reduces CAPEX expenditures needed per unit of output,

Achieving Best Practices in Your Grow

By incorporating energy and space-efficient practices throughout a grow, cultivators can increase production and drive down operating costs, while maintaining stability.  Technological advancements have allowed for more efficient and eco-conscious cultivating methods, with vertical growing applications being at the forefront of these advancements.  Pipp Horticulture mobile vertical racking systems are designed to accommodate and easily integrate a wide range of requirements to meet environmental needs and controls. Through the implementation of vertical racking systems, the energy expended to meet the environmental demands of an indoor cultivator is consistently reduced, over time as well as initially.  Best practices are met and exceeded with vertical growing systems by allowing cultivators to decrease overhead per unit and have additional capital to reinvest in their company.

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How Pipp Horticulture’s Vertical Grow Racks Are Green By Design

Pipp Horticulture is committed to environmental sustainability. As a responsible manufacturer, we are doing our part by having processes in place to minimize the impact on the environment. Check out how we reduce, reuse, and recycle this Earth Day below: Get Started!

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Implementing A Mobile Multi-Level Cultivation System in Your Facility

Part I: Fixed Cost Absorption and Reduction

In the first of a three-part series, we explore how implementing Pipp Horticulture mobile multi-level cultivation and space optimization systems can drastically increase output, improve your bottom line and maximize your ROI.  In an industry like cannabis, where fixed costs continue to rise, increasing the bottom line and improving efficiencies is essential to success. Vertical applications throughout production facilities mean more than just an increase in plant count; it is a calculated way to remain competitive in a capital-intensive industry.

Increasing Canopy Space, Without the Square Footage

Rent is on the rise in the cannabis space.  Cultivators across the country are finding that the availability of properties to lease, especially warehouse space, have come into short supply in recent years.  Furthermore, property owners are more reluctant to rent to cannabis tenants, due to the compounded risks and responsibilities they take on when doing so. The general rule-of-thumb for cannabis tenants has become paying 2-3 times the amount of rent that a “traditional” tenant would.  Lynwood, a city in Los Angeles County, is a perfect example of this hike.  In comparison to other cities in Los Angeles County, Lynwood’s cannabis taxes are significantly lower, making it desirable for many cannabis cultivators.  Due to this high demand, industrial buildings which were renting for $107-$120 per-square-foot in 2016 were going for over $300 for the same space in 2018. Cultivators implementing a Pipp Horticulture mobile or vertical cultivation system have the upper hand when taking on a commercial lease.  Because vertical racking systems can maximize space throughout the operation, creative facility design can double or triple usable canopy space. Under these scenarios, businesses may forgo committing to a large warehouse space that they hope to grow into over time.  Installing vertical racking in a cultivation facility allows for the fixed cost of rent to be either smaller initially or absorbed quicker because of the advantage of producing more in the same existing space. Additionally, cultivators have been mobilizing vertical racks which eliminate permanent or static aisles, further optimizing and maximizing canopy space.  Mobile racks allow for the creation of “floating” aisles that can be deployed when needed, to ensure all areas of the cultivation are accessible for an efficient workflow.  Lastly, several operators have used vertical applications to allow the ease of scaling up when needed, by installing the infrastructure and initial levels, then when ready to expand, they simply add additional grow trays from Greenhaus Industries. This strategy eliminates additional permitting and construction costs and delays.

State Obligations

Not only do state regulations dictate whether cultivators can operate indoors or outdoors, but some also impose a cap on the square footage a cultivator can allocate for vegetative and flower space. In recent years, cultivators have begun facing the burden of a “canopy tax,” imposed by cities and governments to increase their budgets from the cannabis industry.  The tax, based on cultivation square footage, can be as much as several dollars a square foot. For those working under these mandates, implementing a vertical application is the way to maximize that allotted space and remain competitive. In some states and municipalities, grow restrictions and taxes are based on square footage vs. canopy. In these cases, a vertical cultivation system can be utilized to increase productivity or reduce COGS. For those operating in states with plant count limitations, vertical racking is also beneficial.  Not only does it maximize space, but it allows for ease to scale up.  Some states, such as New Mexico, allow for cultivators to apply to increase their plant limit, as market demands.  When implementing a vertical cultivation system, the ability to increase production is already in place and allows operators to do so with great ease and efficiency.

Lowering Energy Capacity and Needs

In cannabis cultivation, the cost of energy is second only to labor.  Not only is the ongoing cost of energy burdensome, but so are the initial expenditures.  The capital expenditure for a cultivator to install lighting and HVAC can eat up a large part of the budget, and if calculated or installed incorrectly, can be even more costly and time-consuming for the cultivator. In addition to the cost of energy is the looming environmental footprint caused by the vast amount of energy required by a cultivation facility.  Intensive energy loads put a strain on local communities, and some states have gone as far as imposing caps on energy consumption.  Some cities have begun offering incentive programs for energy efficient upgrades for indoor agriculture as well. Vertical racking systems paired with LEDs (to be explored in Part II of this series), can reduce the need for, and impact of, energy consumption by cultivators. Additionally, LEDs require significantly fewer kilowatts than standard high-pressure sodium (HPS) lighting does.  Not only are kilowatt-hours used with the implementation of LEDs, but LEDs are also designed to emit less heat.  Less heat means less heating, ventilation, and cooling (HVAC). If implementing vertical racking during the build-out phase of a cultivation facility, HVAC costs (per sq. ft of canopy) could be lower than if implementing a horizontal grow.  Beyond the initial capital expenditure of installing an HVAC system, is the reduced monthly energy cost to run it.  For those considering converting their horizontal grow space into a vertical one, amortizing costs over greater canopy space can significantly reduce COGS. Mobile racking is “green” by design in various ways from utilizing recycled materials to allowing operators to gain efficiency and optimize capacity in a fixed footprint. Multi-level strategy increases the potential viability of space that may not be suited or big enough to support single-level operations and allows operators to stay in spaces that typically are outgrown without space optimization. A smaller building also means fewer construction materials, reducing energy consumption and costs.

Increasing Yield, Increasing Bottom Line

Utilizing a Pipp Horticulture mobile multi-level cultivation system throughout the facility offers an array of benefits and options for cannabis cultivators.  Lower initial capital expenditures on factors such as rent, combined with lower operational costs, are not the only desirable outcomes.  Maximizing canopy space and the ability and ease to scale-up as needed give cultivators new-found security and growth potential in their operation and the industry as a whole.  Implementing a vertical application allows cultivators to remain competitive in an industry where increasing efficiencies and reducing expenditures is the way to win.

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Our Tallest Cannabis Grow Rack Yet

Take a look at our tallest cannabis grow rack, the Panama Pallet Rack, standing at an impressive 26’ Tall x 50’ Long! At Pipp Horticulture, we are constantly pushing ourselves to engineer the best products at the highest quality to provide our customers the most durable cultivation systems in the vertical farming industry. Pretty amazing isn’t it?

 

 

Impressed with our tallest cannabis grow rack? Have you seen pictures from our new showroom yet? Check it out!

https://pipphorticulture.com/our-new-showroom-is-under-construction/

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“The Buckeye Harvest” – Cannabis Business Times, January 2019 Issue

Take a look at part 2 of an article series that the Cannabis Business Times published about one of our satisfied customers.

The Buckeye Harvest

Part II of this three-part deep-dive series into Ohio’s Buckeye Relief tracks the company’s first crop and harvest as team members share tips and lessons learned.

Read the article here

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RedBud

Green Industry Construction Services & Pipp Horticulture Create Over 4,224 SQ FT of Canopy Space

Redbud Roots Buchanan, MI – With help from Green Industry Construction Services (GICS), Pipp Horticulture created 4,224 SQ FT of canopy space at the Redbud Roots facility in Buchanan, MI! That is roughly a 40% gain!

“A huge factor in this project’s success and on-time completion was the Green Industry Construction Services team. Everyone was very professional and pleasant to work with throughout every phase of this project.” Brett Terpstra – National Sales Manager, Pipp Horticulture www.redbudroots.com www.greenindustryservices.com
 

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