Nathaniel Electronics

Vermont Business Magazine, Jan 01, 2005 by Edelstein, Art

AGing Baby Boomer bodies are fueling rapid growth at

Nathaniel Electronics in Vergennes. According to company founder and CEO Joel Melnick, "the baby boom generation is aging, they are active and their bodies are failing." The company has concentrated its efforts in the sports medicine field, which is now a major component of Melnick's business. In 2004, due to one customer's exponential growth, Nathaniel Electronics rode the coattails of that sports medicine company's success and nearly doubled its sales figures to $7.2 million.

"We redesigned a group of products, that customer grew, and ordered a large number of product," he explained.

"I don't expect to double annually," cautioned Melnick. But he is projecting 25 percent growth for several years. He based that prediction on a variety of products Nathaniel has developed, products that will come to market in the near future driving growth in the near term.

Physicians and others in the medical products area come to Nathaniel Electronics for ideas for medical products, which the company then designs and manufacturers. These products are used in surgery. Nathaniel also services its products and, according to Melnick, "we are good at engineering manufacturing and service."

Most of Nathaniel's client base cannot be revealed due to worries about competition. "In this industry," warned Melnick, "customers don't want you working for competitors so they don't want them to find us too easily."

What he can reveal was that he has designed and manufactured laser range finders for Bushnell a leading manufacturer of telescopes and binoculars, and eye surgery equipment for Insight Instruments. In all, Melnick has 10 customers. The company operates a 6400 square foot facility on Panton Road but will expand to 10,000 square feet this winter.

Melnick said he obtains new accounts primarily from networking contacts and referrals. "We've been kind of a secret, customers don't know we are here but we are trying not to be a secret," he said of his company's new direction.

"We have changed management structure we will work with marketers to network better and talk to more people," said Melnick.

Melnick holds a Bachelor of Science in Electrical Engineering and worked for Boeing in Seattle before coming to Vermont in the early 1980s to work for, Simmons Precision in Vergennes. He later decided to start his own company, was a biotech consultant, and later entered the sports medicine field.

Last year, the company nearly doubled its employees. There are 12 employees doing research and development and 14 people in the manufacturing sector. The 36 person staff will rise to 41 this year with five additional manufacturing sector employees.

With sales approaching $7 million the company could well move from number 13 up the list of Vermont's top technological companies.

"The future looks really good, we will be a good sized company," Melnick predicted.

He said he enjoys working in Vermont and follows socially conscious principles of business, which, he said, makes Nathaniel Electronics "a Vermont type company."

"The Vermont name," said Melnick "does indicate good quality, people think of socially conscious businesses when they think of Vermont and that does help us."