UPDATE FRIDAY: Manager Russell Partington was working at his computer at Glenford's Tool Centre 11.30am on Thursday when he and his staff started to smell smoke.
"The smell kept getting stronger and strong," he said.
"We went outside and couldn't see anything. When we went back in the smoke started coming down from the ceiling and we knew we were on fire."
They called 000 and a fire crew was at the shop within five minutes, he said.
"They were here pretty quickly. It was good."
Firefighters put out the blaze with an "internal aggressive attack".
That is when they go in the building and put the fire out from inside.
They then used fans to blow the smoke out of the building.
Ergon electricians were called to cut the electricity from the power pole outside to the building.
The firefighters left the scene at 1.06pm. The cause of the fire is still unknown.
THURSDAY: Three fire crews are putting out a fire at Glenfords Tool Centre on Hanson Rd, Gladstone.
Manager Russell Partington said staff could smell smoke while they were inside using their computers.
They thought the fire was outside but couldn't see anything.
It's believed the smoke may be coming from the ceiling.