Many Manufacturers Stuck in RFID Pilot Phase

If manufacturers are willing to spend additional money, they might be more satisfied with auto-ID systems based on such technologies as Wi-Fi, RuBee (IEEE 1901), ultra wideband (UWB) and WiMAX. RuBee can be used for tagging finished goods at the item level. Its performance in harsh environments, including with foil-wrapped products, and its reduced reliance on a radio signal make it a viable option for manufacturing applications, she says. Wi-Fi can be utilized for location tracking, but systems based on UWB or WiMAX offer greater location resolution, though at a higher infrastructure cost.

Manufacturers have taken an interest in RFID for years with regard to tracking assets and parts, as well as WIP, in part because of the supply chain RFID use resulting from retailer mandates. Although manufacturers have undertaken numerous RFID pilots, the corresponding number of full deployments has been comparatively low. However, Polsonetti says, that could change as the result of increased use of technology based on standards. These include the EPCglobal standards, which may encompass active-tag standards in the near future (the current EPC standards are for passive tags), as well as ISO 15693 for passive HF tags and ISO 24730 for real-time location systems using active RFID tags. Polsonetti says she cannot predict how quickly this change might happen.

According to Polsonetti, the strongest area of growth is in existing applications, such as WIP tracking, though she expects further growth in asset tracking as well. Manufacturers currently utilizing RFID are doing so to make process improvements by matching the correct part or tool to the product theycreate. But such companies could also use other technologies, such as Wi-Fi, to locate parts. Moreover, most Wi-Fi equipment providers are making location-tracking a feature of their solutions, and the growth in Wi-Fi solutions has had an impact on RFID's rate of deployment.

In a recently published report, entitled "RFID in Manufacturing Applications Worldwide Outlook," Polsonetti writes that manufacturing companies' use of passive and active RFID for in-plant applications, such as WIP, parts, materials or asset tracking, will grow globally at an annual growth rate of 8.9 percent over the next five years. In 2006, manufacturers spent a total of $208.8 million. That amount, she predicts, will rise to $319.5 million by 2011. Both figures exclude pallet-, case- and item-level tagging for supply chain mandates.

"This study was done at the impetus of our manufacturing clients," says Polsonetti, and offers a picture of RFID technology competing with Wi-Fi for the market share in the manufacturing world. The full report is available to download for a fee at http://www.arcweb.com/C3/Research/Lists/StudyList/DispForm.aspx?ID=72.