Although he's now in his late 80s, the memories are vivid for Paul Hobaica: memories of growing up in hard economic times, of helping his immigrant parents make ends meet; of striking out on his own in business; and, best of all, of building a life as a husband, father, and business owner.

Paul Hobaica founded Hobaica Refrigeration in 1952, working out of a three-car garage in Glendale, AZ. He soon moved to Phoenix, where there were greater opportunities in commercial refrigeration.

Residential air conditioning became the company's main business during the 1960s, thanks to the growth of forced air systems over evaporative coolers. Air conditioning quickly became a "must have" service.

Hobaica sold the business to his sons Paul and Louis in 1989. He's been fortunate to see his legacy — high ethical standards, a fierce commitment to customers, and ongoing community service — live on with his sons, Paul, Louis, and another son, Mike, who bought into the company in the 90s. They, along with their wives, sons, and daughters, are keeping the Hobaica legend alive in the Maricopa Valley of Phoenix.

Hobaica Services is an HVAC industry leader. When you think about it, it always has been a leader, even during its formative years, when profits were hard to come by. Paul Hobaica's quiet tenacity and belief in what he could do to help people live better and feel better set the bar for others to reach. Nowadays, Hobaica's shows a profit in every year, and it continues to serve as a model of excellence in business management, marketing, dedicated customer service, generous employee incentivizing, regular training and certification, and ongoing service to the HVAC industry and the community.

From Very Little to Very Much
Paul Hobaica arrived in the U.S. from Cuba with his Syrian parents in 1924, at the age of three. They made their way to Phoenix, to be with relatives who had immigrated before them.

Hobaica entered the army in 1943, as a radio operator. He served in the Battle of the Bulge and other European conflicts, and earned a Bronze Star for heroism. Back at home after the war, he studied refrigeration and business on the GI Bill at Phoenix Tech School. After four years of training, he worked for a short time for a refrigeration contractor, then in a supermarket, and performed various electrical jobs on the side for friends and family.

As air conditioning’s popularity grew, the company experienced slow but steady growth. The senior Hobaica did his best to provide for his family of seven children, and put them all through college. He was also committed to helping those less fortunate than himself.

"My father founded the business on two basic principles: the more you give, the more the good Lord will provide; and, always treat others as you would want to be treated," Louis explains.

"He provided free service, repair and installations for non-profit organizations, churches and families in need. Nobody went without comfort with Hobaica's Refrigeration around," Paul adds. "In addition, he's always given discounts to the churches. If it were a hard financial burden he'd work out a way to assist with a very low rate. We've continued that tradition of helping the needy, churches and organizations."

New Era Begins
The company gradually worked into a new era of leadership. In 1978, Paul joined the company as an estimator. He had earned a degree in construction management, and was now ready to take up a larger role in managing and growing the business.

"A construction degree gave me insight into scheduling and operations, as well as business law and other business-related courses," he adds.

Louis went on to earn a degree in business management, and joined full time in 1983. He and Paul began to apply modern marketing and business strategies as a way toward greater growth.

The brothers bought the company in 1989, and grew it by about 15% in the following two years. Their brother Mike Hobaica, a mechanical engineer, returned to the company in 1995. He had been working as an engineer for Hughes Missile Systems, but changed his plans with the decline of the defense industry.

Today, Louis is president, Paul is vice president, and Mike is secretary/treasurer.

Despite a recession in 1992, and a drop in business following the attacks of 9/11, Hobaica Services grew at a good pace through 2007.

Then came 2008, a tough year, for Hobaica's, and the industry at-large. Wages at Hobaica were frozen, and some employees were laid off. But, the business has since rebounded. It enjoyed 32% growth in 2010, and is looking at a record year for 2011.

The company's gross sales for 2010 are $5.4 million. Its gross dollar volume breakdown is:

• Installation retrofit: 65%
• Service: 30%
• Wine cellars: 5%.

Winning 'Raving Fans'
Employee incentivizing is a rich fuel that drives the Hobaica engine. Cash incentives, "Raving Fan" awards (inspired by Ken Blanchard’s book, "Raving Fans"), and "Hobaica Bucks" are bestowed on employees for anything that brings in new business, or by contributing ideas or inspiration to weekly meetings. "Hobaica Bucks," which are budgeted as marketing expenses, can be used for tools, uniforms, or for personal items such as gift cards, or gas cards.

"We focus on our employees marketing our products and services, and obtaining referrals from our customers. I'd rather pay my employees for marketing. That's a big part of our 'Raving Fan' approach," Louis says.