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Caliber Collision Centers may have been founded in 1997, but the concept and beginnings of Caliber started years before. Al Estorga, Jack Falluca, Randy Stabler, Dave March, Stepan Altounian and Eric Bickett were major players in the collision industry, involved in associations and active participants in the Collision Industry Conference, with two being CIC past Chairmen.
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| John Hovis |
As they attended industry events and gazed into the crystal ball of the collision repair industry future, they saw a better way to do business. As a group, their talent and dedication covered all points of the industry. They would consolidate their efforts. They chose the name Caliber to represent high quality and professionalism with the logo representing the high quality refinish jobs that were to become a Caliber mainstay. The original founders of Caliber Collision may never have been able to predict the outcome of their dream.
Caliber Collision Centers is now 11 years old. The business model has been the template for many collision repair consolidation efforts throughout the country. During this time, Caliber has grown to a high of 68 and currently has 64 collision repair centers in California and Texas. They survived a legendary battle with the California Bureau of Automotive Repair (BAR), which accused them of fraud and threatened to close them down, and this past year chairman and CEO Matthew Ohrnstein left the company. Upon Ohrnstein's departure, the company was run for about a year by Dan Pettigrew, a Princeton-educated engineer who had previously served as VP of operations.
It appeared to many that Caliber was crippled and might not be able to survive the challenges thrown at the monster consolidator. In addition to the economic downturn of the collision industry and key employee turnover, Caliber's resolution with the California BAR cost $5.8 million.
In late 2005, Caliber's financial investors were paying close attention to the state of affairs. One such investor, The Bank of New York, had recently been involved with another multi-location project with great success. They had worked with someone who had a proven track record of operating performance. They wanted to bring this man to Caliber, thinking it would be a good match.
New president rides in
John Hovis is from the railroad business and joined Caliber as president of the company in November 2005. Hovis spent 26 years at Burlington Northern Railroad, retiring as vice-president of operations. Since Burlington Northern, he has served as COO for Rail America, a multi-regional transportation and logistics provider and president of Production Resource Group, a worldwide, multi-unit entertainment services and production organization.
In 1997 he left the corporate world for two years to focus on volunteer work. He spent this time in the inner city ministries of south Dallas, Texas, working with Pastor Leonard Hatcher helping to build store-front churches. "There was a lot of work to do there, we saw a turnover of people every week," he said.
Hovis walked into the Caliber organization focused and with clear strategies for success. "There is one common thread for a chance at success," he explained, " to continue to produce and perform at the highest levels." His goals are crystal clear. "We will routinely and consistently stay at or above standard benchmarks."
Hovis talked with Autobody News about the old company and the new company. He has improved the 'new' company's level of communication. Now all locations communicate with each other, focusing on the exchange of best practices. That was something Hovis took to heart. "Why did we have to make the same mistake 64 times," he laughed. "The stores have embraced the concept and going forward is encouraging."
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