In our second annual survey of top automatic data capture (ADC) suppliers, there were no surprises. And given the fortunes of most industrial information technology providers, such news was good news.

For the second year in a row, Symbol Technologies, Intermec Technologies, and Zebra Technologies are the number one, two, and three manufacturers of hardware, software, and systems for bar codes, radio-frequency data communications (RFDC), radio frequency identification (RFID) and related data capture systems worldwide.

Even their numbers were little changed. Symbol posted revenues for its most recent fiscal year of $1.32 billion, down from $1.45 billion, although restatements may be coming.

Meanwhile, both Intermec and Zebra showed some gains with modest revenue increases. Intermec's revenues rose from $655 to $659 million, while Zebra, the leader in label printers, gained 5% from $450 to $475 million.

Just as last year, our list of top suppliers includes companies that manufacture and sell hardware, software and systems for industrial ADC applications in North America and in many cases worldwide. The list does not include pure resellers, systems integrators and other companies that do not manufacture hardware or sell software.

We compiled the list from the annual reports of public companies; interviews with industry leaders; and input from industry consultants and analysts at VDC (508-653-9000), a research company specializing in technology, and the Wall Street firm Bear, Stearns (212-272-9300).

Slow and steady as she goes may be the best description of the ADC industry right now, according to David Krebs, group director for VDC, who estimates that total revenues for the $5 billion+ industry were flat in 2002.

Industry insiders, however, are cautiously optimistic about the next few years.

'The heyday of double-digit growth is over,' says Tom Dowd, director of industrial marketing, Intermec. 'But we expect annual growth of about 7.5% for our industry at least through 2006.'

Why is ADC growing when the rest of tech is still in a slump? One reason is the imperative to improve productivity, according to Kevin Starke and Peter J. Barry, two analysts who follow the ADC industry for Bear, Stearns. The need to drive down operating costs in the face of stagnant sales 'play directly into the strengths of bar coding where productivity and efficiency are core and measurable attributes,' the pair recently reported. That is especially true as companies attempt to increase productivity while shedding jobs.

RFID as an alternative to bar codes may be getting all the attention in the press thanks to Wal-Mart's RFID initiative for its suppliers. But bar codes, including 2D symbologies; wireless communication; and mobile label printing, are still bigger factors in the market.

'The development of standards like 802.11b and WiFi brought the price of mobile computing and printing down to the point where it's affordable for smaller and smaller businesses,' says Stuart Itkin, vice president, marketing and product management for Zebra Technologies.

Going forward, that is expected to put scanners and ADC equipment in the hands of more and more workers.

Click the icon to view last year's top 20 ADC suppliers.