Ambitions strengthen for distribution firm

By Sandi Krasowski, Local Journalism Initiative Reporter

Source: The Chronicle-Journal

Final Drives Canada, a Thunder Bay-based international distribution company, is expanding and relocating to Dawson Road thanks to $78,000 given from the Ontario government.

The funds, which are made possible through the Northern Ontario Heritage Fund Corporation (NOHFC), are part of the province’s spending aimed at providing northern businesses the tools to grow, become more competitive and create jobs.

Allen Powell, the chief operating officer of Final Drive Canada, said this investment is important to the growth of the company and will allow them to bring in new team members, invest in additional equipment and continue growing product offerings and the markets that they serve. The three-year-old company originated in its sister business, Itec-2000.

“Thunder Bay is uniquely positioned for this kind of growth,” he said.

“Being centrally located in Canada allows us to distribute heavy equipment components and products efficiently across all industries, including forestry, mining and construction, to both Eastern and Western Canada. As we continue to grow, we’re also expanding our global supply chain networks and are working with partners in the U.K., China, Germany, Japan, Italy and South Korea.”

Powell added that Final Drives has exclusive agreements with these partners outside Canada to distribute their products in the Canadian market.

“All of our shipments come into us via containers, and this is something that we’d actually like to work with the City of Thunder Bay and the Port of Thunder Bay on to try to expand our options for importing directly here,” he said.

“The containers typically arrive in Montreal, and they get put on a rail car, which then goes to Winnipeg. From Winnipeg, it’s put on a truck and comes back to Thunder Bay, so it’s really not the most efficient form of transportation. We’d love to have an opportunity to bring ships directly into the Port of Thunder Bay, or have a rail port.”

Powell explained how the U.S.-imposed tariffs have actually had a positive effect on his company.

“The tariffs have taken our U.S. competitor out of the marketplace,” he said. “If a company is bringing in products into the U.S. market, they’ve had to pay tariffs on them. If we’re bringing products directly from other countries into Canada without tariffs, we have a more competitive price.”

Kevin Holland, MPP for Thunder Bay-Atikokan, said the province “got a clear mandate” last year from Ontarians to protect Ontario.

“Part of that is really building the opportunities that are here in Ontario,” Holland said. “Being able to build the economy in Ontario, drive innovation and build businesses and opportunities here is what’s going to protect Ontario from some of the challenges we’re facing from the global market.”