Custom gel-pack maker Gelpax opened a 5,000-square-foot factory in Grapevine, Texas, after operating out of London, Ont. since 2011.
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Gelpax, a maker of custom hot and hold gel packs, has moved its operations from London, Ont., to Grapevine, Texas.
The company opened a 5,000-square-foot factory in the Dallas-Fort Worth area last year, and it continues to maintain a sales office in London, said Aston Scott, who runs the business with his brothers.
Scott said the move brought Gelpax closer to its customer base and reduced uncertainty for a business that ships most of its products to the United States.
“I’m a proud Canadian, I love living in Canada and doing business in Canada, but it made more sense to open a facility in Grapevine, Texas,” Scott said.
He linked the decision to economic considerations and said tariffs contributed to the company’s uncertainty because most of its product was shipping across the border.
Scott said Gelpax was founded in Vancouver in 2004, before moving operations to London in 2011.
He said the earlier move to southwestern Ontario was also driven by economics, including easier shipping across Canada, and that it was cheaper to live in London than in North Vancouver.
Scott said the transition to Texas has also made hiring easier, describing Texas tax laws as more favourable and saying the business culture has helped the company grow.
“It’s easier to make money, and it’s easier to help your team make money, which is important to us,” Scott said.
Romel Mostafa, an assistant professor of international business at Western University’s Ivey Business School, said governments can help firms facing adaptation pressures through coordinated support and longer-term assistance.
Mostafa said policies should not be aimed only at building new supports, but at making existing supports work better for firms under pressure to adapt, including measures that could provide concessionary loans so companies can pursue opportunities and diversify.
Scott said there is no discussion of the Canada-U.S. trade war inside the business and that the company focuses on connecting with customers and growing, adding that “for certain industries, Canada is better, and for other industries, America is better.”
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