How does Chile fit into Finning’s global strategy?

Finning runs in Canada, Chile, Argentina, Bolivia and the United Kingdom. Finning’s South American sales represent around 35% of the company, and 65% of that portion is related to the mining industry.

How would you characterize Finning’s relationship with Caterpillar?

Finning is the largest dealer for Caterpillar in the world. In mining we are the largest operation in both Canada and Chile and we only sell Caterpillar equipment. Finning has a close, demanding relationship with Caterpillar with the common goal of delivering the best products and services to the customers. Finning South America has around 5,000 people working within it. We have all types of machines that cover the need for open-pit and underground mines.

What are the key products you have now?

Finning’s best-selling mining truck is the 797F, which is the largest, highest payload capacity haul truck within Caterpillar. We have many hydraulic shovels, drills, bulldozers, and graders for open-pit mines, and we have a wide range of scopes, trucks, and LHDs for underground mining.

How did your business adapt to the fluctuating price of copper?

The demand in new equipment changed dramatically. It dropped about 10% and it was challenging for Finning to reorganize costs throughout the company. However, this also brought on a surge of innovation to help our customers reduce the total cost of operations. We are at a point now where we have the lowest cost per production unit on the market. The main strategy for Finning was to put experts in mining and focus on the exact needs of our customers.

What steps does Finning take toward training?

Finning recently invested over $15 million in a new training center. We have a very strict education process where our people learn at a very high level. Our technicians can work in Chile, Canada, and the United States, as our operational standards are exactly the same anywhere in the world. Our employees are well paid and recognized within the industry. In general, we only train our employees, but we have specific training plans for our customers if they chose to do their own maintenance.

What major innovation trends have you noticed in mining machinery?

Autonomous mining will revolutionize the industry and is very exciting for Finning. We are looking to make Chile one of the leaders in this aspect. Today in Australia, a mine is running fully autonomously with 40 to 50 tracks, which has improved their productivity by approximately 38%. Some people are scared that autonomous mining will result in a loss of jobs, but what they forget is that it creates opportunities to open many other mines that are otherwise too expensive to pursue. We are working very closely with clients and with Caterpillar to develop this technology and introduce it to the Chilean market. Chile needs to continue to be a leader in mining and if we do not take this opportunity to advance, Chile will fall behind the rest of the industry. We do not want Chile to have the same fate as Detroit. Finning is very well positioned for the future, and we are prepared to make a difference.

How does Finning stay competitive within the industry?

The competition is tough as the market is very concentrated. Finning’s main strategy is to continue working hard to be the best company available. We continue to deliver excellent equipment and services. We have more than 60% of the market share in mining in Chile. One of Finning’s main points of success is our supply chain strategy. We have large facilities in Chile where all of our inventory can support the customer no matter what the needs are. Another factor that sets Finning apart is our dedication to safety. We have a world class standard when it comes to safety.