The growth of radio frequency identification (RFID) technology shows no signs of letting up anytime soon. In fact, according to a recent study by Frost & Sullivan (www.frost.com), over the next six years the total North American RFID market for manufacturing and logistics will likely grow at a compound annual growth rate of nearly 20%. Much of that growth will come as a result of the traction RFID technology has already gained in supply chain management applications like inventory control, logistical track and trace, and returns and warranty management.

Of course, many more RFID applications are emerging as well in areas such as work in process manufacturing, regulatory compliance, access control, and health and human safety. RFID technology, for example, can help companies comply with federal and state laws and regulations resulting from the Food and Drug Administration's Anti-Counterfeiting, Bio-Terrorism Act and Customs' Trade Partnership Against Terrorism. It can even be used in new patient safety, warranty and expiration, spoilage, and contamination applications.

While the growth inspired by these emerging applications brings welcome news to companies developing and manufacturing RFID readers and tags, it also poses some interesting challenges. One such challenge is overcoming industry perception that the short-term return on investment in RFID may not justify the initial cost of its adoption (e.g., process re-engineering, re-tooling and integration). Some in the industry are also concerned with issues pertaining to privacy and standards, as well as public relations.

Whether businesses are adequately prepared to handle increasing RFID adoption is another significant issue facing the industry today. According to a 2006 study commissioned by the Computing Technology Industry Association (www.comptia.org) the answer to that question is no. More than 75% of companies participating in the study indicated a shortage of talent to hire from in RFID technology. A full 80% said that this lack of skilled labor will hamper RFID adoption. Hoping to address this problem, CompTIA has now launched an RFID certification program to validate the IT professional's foundational level knowledge for RFID implementation.

This is just one move that may help the industry better prepare for increased adoption of RFID. Of course, for the technology to achieve true widespread acceptance and proliferation, continuing technological advancements, evolving legislation and standards, and innovation in consumer applications will also be required. Some of the technology advances to look for include new and improved tags, tag packaging and alternative tag designs such as chipless tags based on surface acoustic wave (SAW) technology or IC-based tags that use smart active label (SAL) technology. Development of sensory tags (e.g., tags whose packaging integrates them with sensors) that monitor, record, and even react to all sorts of environmental conditions, will be another significant technological advancement. They are expected to enable a new range of applications from monitoring battlefield activities to tracking the facial movements of the disabled to control their wheelchairs.

As these technological advances come to fruition, volume production of RFID tags will go up to meet demand and the cost of RFID tags will be driven down. This will be yet another important factor in driving future RFID adoption and ultimately, its commercial success.

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