FilterBoxx is using downturn-based downtime to look into more export markets. It is starting to work with representatives in Asia and the Middle East to spread the word about its industrial water-treatment systems, and it’s also actively seeking U.S. reps. “I think the recession has let us lay the foundation for growth in the next few years,” says Slough.

Save clients money

Toronto-based Herjavec Group Inc.(No. 26) sells computer-security systems, mainly to big business and government clients; but these days, even those institutions are cutting back orders. CEO Robert Herjavec (who moonlights as an investor on CBC-TV’s Dragons’ Den) has developed a new solution to address customers’ cash concerns. He offers to save them money by taking over the management of their computer-security systems. “We don’t make a lot of money on it,” he says, but the arrangement lets his company save the sale, strengthen client relationships and earn long-term management fees.

Herjavec’s solution is uniquely suited to today’s sluggish economy. This service isn’t as profitable as the company’s regular line of work, and it has never had extra people to carry out the service. “We can do this only because it’s easier to get good people now,” says Herjavec. He expects sales this year to jump by 70% over 2008’s $25.9 million.

Invest in service

When the recession struck, Internet service provider TekSavvy Solutions Inc.(No. 27) was just starting to build for the future. The Chatham, Ont.-based company is adding new hardware that will increase its capacity by 30% and automate many processes now conducted by people. But instead of using that new capability to lay off staff, CEO Rocky Gaudrault made a pact with his 62 employees that will make TekSavvy a stronger competitor when growth returns. The winning pitch: if his staff commit to cross-training to become more skilled and flexible providers of customer service and tech support, no one will lose their job to automation.

Gaudrault says the deal will lower TekSavvy’s staffing costs over the long term and improve its service by training lower-cost customer service reps to help clients with simple technical problems, such as log-in glitches. “This will up the ante for the company, big-time,” says Gaudrault. “Who else has customer-service people who can handle technical issues?”

Champion industry innovation

Targray Technology International Inc.(No. 73) of Kirkland, Que., always has its eye on the future. When it saw demand slackening for its DVD-manufacturing components a few years ago, it moved quickly into a new growth area: parts for solar-energy systems. And last year, seeing recession on the horizon, it decided to move more money into product development, hoping to impress customers searching for innovative products to lower the cost per watt of solar power.

Working with suppliers and product developers, Targray has accelerated its product-development effort by 30%. As a result, although there are fewer customers in the market (banks have reduced credit to most solar producers), Targray is selling more products to those that are left. Besides reinforcing the company’s brand as an innovation champion, president and CEO Andrew Richardson sees another advantage to this strategy: the company remains strong enough to retain good people for the recovery. “We’ve been developing people for years to have them understand this market,” says Richardson. “The last thing we want to do is let them go.”

Go Green

At Toronto-based InterRent Real Estate Investment Trust (No. 31), which owns apartment buildings throughout southern Ontario, the downturn has provided an excuse to tighten up and go green. CEO Michael Newman says the company is becoming more aggressive about charging tenants for incidentals such as air conditioners and parking spots. It’s also investing in fast-payback “green” tools and equipment to reduce costs forever.

In one instance, InterRent is taking advantage of government incentives for installing energy-efficient light bulbs. Its other environmental initiatives include installing low-flush toilets, aerating faucets and anti-theft light fixtures, as well as making sure that windows and doorways are properly sealed. Newman says that InterRent — which generated revenue of $33.9 million in 2008 — is spending $2 million on its green program. But between the reduced energy use and government incentives, he says, “We’ll get that back within a year.”