As converters explore new ways to boost their business, RFID labeling has emerged as a popular option. The technology has moved past the phases of acceptance and affordability. Plus, brands are increasingly requesting these label technologies be implemented into their operations.

“Speaking strictly from a UHF RFID (RAIN) perspective, the technology has finally evolved into a real solution with demonstratable ROI,” states Ryan Zins, product manager, RFID, Diversified Labeling Solutions. “Gone are the days of sub 80% yields, unreliable reads, unique inlay placement printer guidelines, exorbitant pricing, and so forth that stunted adoption.

“In addition, a better understanding of encoding standards allowing for information to be shared throughout the supply chain has allowed for more entities to leverage RFID for their own business,” adds Zins. “As for growth, the numbers speak for themselves, and I’m sure the industry will exceed expectation again this year.”

There are numerous applications for RFID, too. Big brands have led the drive for these products, as they have recognized the inherent value of the technology. “The RFID industry has been growing rapidly in the last five plus years due to many large retailers/big box stores adopting RFID technology for the products they sell,” explains Mark Davenport, RFID business unit manager, Abbott Label. “Not only are the large retailers using this technology, there are also a few large fast-food chains that have adopted the technology to help better manage their incoming supplies. Major airlines and airports around the globe are also contributing to this growth. RFID is the fastest growing sector in the label business today.”

Defining RFID labeling

Before getting started, it’s important to know various aspects of RFID labeling. There are three main types of inlay delivery formats: dry, wet, and label/ sticker. A converter’s equipment capabilities and long-term goals in the RFID market will influence which one will be selected.

A dry inlay is a continuous web of inlays without adhesive or face material. True dry inlays include a paper interleaf to protect the chip, while Dry+ (or Dry RIF, for reinforced) inlays feature a protective PET overlaminate to safeguard the chip during conversion. These inlays require diecutting from the web, and adhesive, such as transfer tape or hot melt, must be added separately.

Meanwhile, wet inlays are characterized as such because of their adhesive backing, enabling attachment to surfaces like packaging or products. And no additional processing is required.

“We primarily produce wet inlays, with a standard gap of 3-4mm between each inlay,” says Gary Stegall, RFID Technical Sales Specialist, Avery Dennison. “Converters adjust the pitch of our inlays to meet the specific requirements of prime labels or paper face labels. Most converting and inserting equipment can easily re-pitch inlays using a peel plate method to remove the wet inlay from our liner.”

Finally, the label/sticker features a pre-diecut inlay with a typical gap of 3-4 mm, pre-defined adhesive, and a pre-defined paper or PET face material. Most label inlays are used in RFID printers, however they can be applied to products/packaging and then encoded on a production line.

Equipment to consider

From an equipment standpoint, there are several considerations. RFID capabilities can be integrated into an existing label conversion process with the addition of an insertion module. Depending on quality control and throughput demands, a more extensive equipment upgrade may be required.  An insertion module can be added to many printing presses or standalone insertion equipment can be used. If the inlays need to be encoded by the converter, there are a few options. A high-speed, reel-to-reel encoder can be used. If the inlays need to be printed and encoded, then most converters will utilize a bank of RFID printers. If a faster approach is required, a converter could print on the inlays as one step and encode on a high-speed encoder as a second step.

“We recommend using RFID testers before and after insertion to ensure the inlays are not being damaged during insertion,” remarks Stegall. “We also recommend purchasing a handheld RFID reader to spot check their encoding to ensure the inlays were encoded properly.”

Abbott Label has established a Tennessee-based facility dedicated solely to RFID converting. The new RFID facility has expanded the company’s capabilities to now offer all of its customers a vast array of RFID labels and tags. These solutions were not previously available to customers.

“We are very blessed here at Abbot Label Tennessee to have a long-tenured RFID manufacturing team with years of experience converting a multitude of specialized RFID tags and labels,” says Davenport.

RFID challenges

Converters should be cognizant of several potential obstacles in their RFID journey. Setup will require time and patience, especially for label printers running multiple lanes. Each lane needs to be adjusted independently for proper insertion and proper tension.  Additionally, converters will need to maintain proper tension to avoid causing stress to the inlay. Too much tension can cause the inlay to curl when it is removed from the liner. Maintaining proper nip pressure to avoid crushing the chip during conversion is also a key to success.

“Inlay availability and/or stocking levels is always a challenge, too,” says Zins. “RFID insertion adds a couple of layers of degree of difficulty to production and ensuring quality is a challenge on every job. Service bureau challenges center on data integrity. Generally, RFID production is a step or two beyond most of DLS’s standard label production.”

There is also an educational component to the RFID process. Companies must understand that the packaging of labels with RFID requires proper training.

“You need very knowledgeable suppliers on both the material and the equipment side of this industry,” says Davenport. “Make sure you’re working with suppliers that have years of experience, as there are many new players entering this arena.”

In the future, it’s expected that growth will continue to be robust. Increased competition will also play a role in this market. “Growth may start to flatten somewhat, but that’s inevitable given the trajectory over the last couple of year,” explains Zins. “But I expect growth to continue to be very good as more adoption takes place. Competition in our space, label converting, is also inevitable as more convertors bring capabilities on line to meet the demand.  It’s a very exciting time to be in the RFID converting world.”