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Summary of Baird RFID Monthly for January

Baird has released its January report. The nine-page document is a worthwhile read for anyone requiring an overview of the industry's last 30 days. For those without time to do so, we have reprinted here the report's summary.
Jan 23, 2006This article was originally published by RFID Update.

January 23, 2006—Wealth and asset management firm Robert W. Baird & Co., widely referred to as simply "Baird", has released its RFID Monthly for January. Baird has given RFID Update permission to reprint the Key Developments section (below), which serves as the report summary. For those wanting more detail, the complete nine-page document is available free here. The report includes its usual matrix of primary RFID providers on page 6, and following are the key developments:
  • Gen2 Pace Remains Measured. Many of our contacts are not seeing significant Gen2 equipment at this point, but they expect to see increasing amounts available during 1H06. We are hearing of a number of service providers that are currently benchmarking tag and reader equipment in an effort to be prepared as piloting increases.
     
  • Compliance Mandate Reception Improved, But Struggles Continue. While we have heard that the next wave of consumer product companies to fall under the mandate requirements (i.e., the next 200 CPGs) is being more diligent towards implementation than the original 137, we are also hearing that many of the third-party logistics providers that are part of the next wave are struggling as they have relatively smaller IT departments.
     
  • Texas Instruments to Remain in RFID Business. Contrary to our previous reports, Texas Instruments did not sell its RFID business as part of the sale of their Sensors and Controls business to Bain Capital. They indicated that they kept the business as a growth opportunity and will move it into their semi-conductor business. We view this as a positive indicator for the overall market in that TI not only expects a strong longer-term RFID opportunity, but is also seeing momentum build in the current market. We expect the inclusion in the semi-conductor business will provide additional resources for development.
     
  • Pharma Review by FDA. The FDA is expected to hold a public workshop on February 8 and 9 to evaluate the timing on their RFID "e-pedigree" initiative with respect to RFID. The FDA had originally hoped that RFID would be sufficiently in place by 2007... The FDA has commented that overall industry adoption has been slower than expected, and they believe the 2007 goal is likely not attainable. As part of this meeting, we expect the impediments to adoption will be evaluated.


Download the full Baird RFID Monthly (pdf)
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