By John Edwards

Dec. 19, 2011—With the "soft" economy now entering its fourth year, by some estimates, it's easy to understand why many business leaders are tempted to belt out a few bars of the old Merle Haggard tune "Are the Good Times Really Over?"

For many companies facing dismal markets and depressing financial outlooks, it's not a question of getting back to business as usual, but grabbing onto a life ring that will keep them afloat for the duration. While radio frequency identification alone can't restore the good times, a growing number of businesses are convinced the technology can help them better survive the tough period, however long it lingers, and position them to hit the ground running once the economy gets back in gear. By powering revenue-building innovations and allowing adopters to run smarter, leaner operations, RFID is filling a critical role for companies that have already made the most of all the traditional recession-fighting tools at their disposal.

Photo: iStockphoto

"Everybody is a little scared about what's going on in the economy," observes Drew Nathanson, VP of the Auto ID practice at VDC Research, a technology market research firm in Natick, Mass. "There's a lot of volatility, and volatility typically means holding onto your money." Nathanson thinks now is the time for businesses in almost any field to consider implementing or expanding their use of RFID. "The value proposition is proven; it's a smart investment," he says. "The benefits adopters get are immense, especially the influence on the bottom line."