Item Labeling and Coding - The Next AIDC Application Catalyst?

According to David Krebs, AIDC Group Manager, "Successful AIDC suppliers will look beyond current core regional, vertical and application opportunities. We think that one of the strongest application opportunities will come from item labeling and coding to support true cradle to grave tracking efficiencies."

Natick, Massachusetts - It is no secret that the previous two years played havoc with the financial health of many AIDC suppliers. Unfortunately, near term prospects are no rosier. While VDC analysts expect the overall AIDC market to rebound and are forecasting robust mid to long term growth, these prospects will largely be contingent on effective demand creation strategies. In other words, while traditional AIDC applications will provide replacement opportunities, they will not support strong, consistent growth.

According to David Krebs, AIDC Group Manager, "Successful AIDC suppliers will look beyond current core regional, vertical and application opportunities. We think that one of the strongest application opportunities will come from item labeling and coding to support true cradle to grave tracking efficiencies." From emerging unit of use coding standards in the pharmaceutical industry to more effective recall management solutions in the food/beverage, electronics and automotive industries, VDC research shows coding on the item level is expected to be a major AIDC application catalyst.

AIDC Printing System Shipments by Primary Application Supported

2002 Total: $1,493.2 Million

Shipping/Receiving: 57.80%
Materials Management: 24.80%
Source Coding/Serialization: 14.20%
Emerging/Other: 3.20%

2006 Total: $2,154.9 Million

Shipping/Receiving: 42.00%
Materials Management: 17.80%
Source Coding/Serialization: 31.00%
Emerging/Other: 9.20%

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To view the entire press release including charts go to
http://www.vdc-corp.com/autoid/press/03/pr03-17.html

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Initially these emerging opportunities are expected be driven on the sector or industry level - for example by the AIAG in the automotive sector. However, this approach has historically resulted in incompatible industry specific and often region specific solutions. "To avoid situations like the one currently experienced with EAN and UCC codes, we suggest a more cross-functional approach governed by ISO level organizations," said VDC's Krebs.

ABOUT VDC

Founded in 1971, VDC is a technology market research and consulting firm that specializes in industrial and commercial electronics, computing, communications, software and power systems markets.

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Report Availability
http://www.vdc-corp.com/autoid/annual/03/br03-04.html

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For further information about "The Global AIDC Industry Business Planning Service", contact:

David Krebs, AIDC Group Manager - davidk@vdc-corp.com

Marc Regberg, Senior Vice President - msr@vdc-corp.com

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