In a year that battered many information technology (IT) companies, manufacturers of automatic data capture (ADC) hardware and related software made it through relatively unscathed. True, there were declines in revenue, but they weren't as severe as those suffered in most other information system related segments.

With that in mind, we set out to rank in order the 20 largest worldwide suppliers of ADC hardware and software.

What did it take to make our list?

First, a company must manufacture hardware, write software and supply ADC systems. We did not include companies that simply resell hardware and software from others. The predominant technologies are bar codes, radio-frequency data communications (RFDC) and radio frequency identification (RFID). However, several suppliers offered other technologies. Our table includes a list of what each supplier provides.

Next, a company must sell in North America, although our chart includes worldwide sales.

Finally, the companies listed had to provide ADC solutions to the industrial market. We did not include companies that exclusively provide wireless point-of-sale solutions for the retail market. However, companies that supply retail applications as well as the industrial market are included.

What's more, while most ADC providers are publicly held companies, not all break out numbers for these divisions separately. Where possible, we used industry estimates. The same is true for those privately held companies that don't report their numbers.

As a whole, the ADC industry experienced a modest slowdown. The degree to which companies were affected depends on the size and location of their major markets.

Overall, European sales of ADC were down around 5 percent, while American sales dropped by about 10 percent. These declines were relatively mild compared to many other segments of the IT industry where drops in revenue of 35 percent or more were not uncommon. 'The industry did shrink a bit, but the bottom didn't fall out,' says Richard Bauly, director of strategy and business development for Psion Teklogix (No. 4).

All companies experienced a slowdown in business, with the larger ones feeling a correspondingly larger loss. No companies went out of business, however. Meanwhile, the most significant acquisition was by SICK, a German-based company best known for its sensors but with a sizable ADC business too. It bought Laser Data, the fixed-scanner division of PSC (No. 5), putting SICK at number 16 on our list.

Now, business is improving for ADC suppliers. 'Overall, we're seeing things begin to pick up in the industry,' says Mitch Allen, director of symbol manufacturing and supply chain verticals for Symbol Technologies, the leader on our list with sales of $1.45 billion. 'There was stalled momentum after the dot-com bust. Then, for about six months, we were seeing pilots not commitments. Now, the pilots are moving into installs.'

'We've also found that there are layoffs at many companies,' Allen continues. 'That's an opportunity for our technology. Companies have to do the same amount of work with fewer people, so they have to automate.'

In addition to increased automation, end users are clamoring for real-time visibility. This will give them the ability to know up to the minute (rather than waiting for batch processing) what's going on in their warehouse, and even in their suppliers' and third-party logistics (3PL) partners' warehouses. As a result, companies are using ADC technologies such as bar codes, RFDC, RFID and real time locator systems to create and support inventory visibility and improve synchronization across the supply chain (see related story - The Wireless Revolution).

While bar codes remain the dominant ADC technology, RFID is continuing to emerge and develop, but slowly. While considered by industry experts as a complement to bar codes, only one percent of all RFID tags are used currently for supply chain management. The biggest hindrance to RFID's growth has been the lack of established worldwide operating standards.

In contrast, mobile technologies such as RFDC terminals have been more readily adopted across the supply chain. 'We've seen strong growth in all areas of our business, but the strongest area has been in the mobile side of the business-beyond the four walls of the warehouse,' says Clark Richter, business development manager, for Everett, Washington-based Intermec Technologies (No. 2).

The mobility aspect of wireless technologies allows workers to take the ADC device wherever the work is, while simultaneously accessing the network. This is different from portability.

'True mobility is the ability to have continuous coverage as you move through the warehouse,' explains Symbol's Allen. 'Portable means that I can plug the equipment in here or there. Mobile technology offers anywhere-type coverage.'

Wireless mobility extends from handheld readers to label printers.

'End users no longer have to deal with the hassles of reconfiguring their networks when moving a manufacturing line or relocating printers,' explains Matt Banach, product manager for wireless networking systems for Zebra Technologies (No. 3). 'Our customers can literally move their tabletop printers to any location within their facilities-without downtime.'

Still another ADC trend is the increased intelligence being required of, and available in, handheld equipment. 'If a warehouse picker is able to see on a mobile computer pictures of things-in addition to the words and letters-it's a very powerful thing,' says Psion Teklogix's Bauly. 'I can see it there on the screen and I can see it there on the shelf and I can say: 'Yes, that's the one that I want.' You couldn't do that a few years ago.'

Even label printers are offering new capabilities, like the ability to print complex graphics as well as standard and 2D bar codes. It's safe to say more ADC innovations can be expected.

'It's important to note that as the times are more difficult, companies have to differentiate themselves,' says Gene Korzeniewski, manager of product development and technical support for Avery Dennison Printer Systems (No. 14). 'With fewer sales opportunities, you have to add value or performance for your end users to select you versus the competition.'

Those types of developments-in spite of the tough economy-will continue to propel the ADC industry forward in the years to come.

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