Sheboygan Press • March 2, 2010

Congratulations to the employees and management of American Orthodontics for winning a 2009 Wisconsin Manufacturer of the Year award.

The Sheboygan-based manufacturer of dental braces took top honors among companies with between 300 and 750 workers. The 42-year-old firm employs about 400 people in its 100,000-square-foot plant on Sheboygan's west side.

The awards, co-sponsored by Michael Best & Friedrich LLP; Baker Tilly Virchow Krause, LLP; and Wisconsin Manufacturers & Commerce, recognize Wisconsin companies that demonstrate a commitment to business excellence and make Wisconsin a better place to live, work and play.

As reporter Josh Lintereur's story on the award last week noted, American Orthodontics is unique among manufacturing operations, which have been hit hard during the recession of the last three years.

As other companies making braces cut back, American Orthodontics stepped up and managed to expand its market share. While other manufacturers in Sheboygan and around the state have laid off thousands of workers, American Orthodontics has added 25 employees.

Equally impressive is that the company has never laid off an employee and has seen its sales grow every year since Chief Executive Dan Merkel started it in 1968 out of frustration over the cost of braces for his daughter.

Because of its no-layoff policy and growing sales, American Orthodontics can also boast of a steady work force, with many of its employees having more than 20 years on the job and a turnover rate of less than 1 percent, according to company officials. Workers say they are loyal to the company for a number of reasons, including no time clocks and flexible work schedules.

As 27-year employee and now production manager Bonnie Sorensen noted, "There are a lot of us in our 50s who started working here in our 20s."

Another factor that makes American Orthodontics such an impressive business is its commitment to this area. Although half its sales are to overseas markets, 95 percent of its products are still manufactured in Sheboygan, where a highly automated production line and a skilled work force allows it to remain cost-competitive.

"Moving overseas is not an option and has never been an option," said company marketing director Jeff Smith.

No doubt, the loyalty of employees and their dedication to the company plays into the reasoning.

Merkel's business model may not work for every production company and the marketing plan employed by American Orthodontics may not be applicable to other manufacturers, but American Orthodontics has seen its approach pay off well for everyone who works at the company.