Most warehouse managers nowadays would consider real-time communications with a fleet of forklift trucks to be a "no-brainer." When it comes to efficiency, it's a real advantage if a lift-truck driver is able to get picking instructions from a truck-mounted or handheld data-collection terminal. Likewise, operations are faster and more efficient when a driver can electronically notify a warehouse management system of what's being unloaded from incoming trucks.

That's easy enough to achieve in most warehouses. But what if you operate a cold-storage facility and your forklift drivers must shuttle between freezers at 10 degrees below zero and a loading dock baking under an 80-degree sun? Could your data-collection terminals adjust to such wild swings in temperature and humidity?

That's exactly the problem that confronted Geneva Lakes Cold Storage Inc. in Milwaukee, Wis. The company wanted to install data-collection terminals on forklifts, but managers were concerned about potential damage to the terminals because the forklifts continually move in and out of a freezing warehouse.

To prevent such problems, Geneva Lakes purchased 55 "ruggedized" terminals from LXE Inc. of Norcross, Ga. Those units were specially designed for the difficult conditions and physical stresses that lift trucks often endure. "The terminal is mounted right on the forklift, so it's cushioned for shock and ruggedized for temperature and dust," says Shannon Riley, the warehousing company's information systems manager.

In addition to being able to handle challenges like temperature fluctuations, shocks, and dust, the equipment had to be suitable for use by drivers who spend their days wearing protective cold suits. The shape of the keyboard, in fact, was a major selling point. "We needed a good-sized keyboard that could be used with a pair of gloves," says Riley. LXE Inc. came through with a big keyboard, and Geneva Lakes awarded the vendor a quarter-million-dollar contract.

To warehousing and distribution professionals, the term "ruggedized" means the equipment can withstand two- to four-foot falls, extremes in temperature, and contact with dust or liquids. Some customers, such as container terminal operators, need their data-collection terminals to function flawlessly even though they're constantly exposed to salt spray and sun, says Richard Sorenson, director, product management for LXE. Equipment that's carried all around a warehouse, moreover, has to be able to survive the inevitable employee fumbles. "Hand-helds have to survive drops. A conventional laptop cannot survive even a two-inch drop," he explains.

Ruggedized data-collection devices can stand up to that kind of abuse because they're engineered both internally and externally to withstand difficult environments. These units usually have a tough external housing; internally, they boast components that have special coatings, sealants, and other design features to help the device function consistently while exposed to extreme humidity, temperature swings, dust, vibration, and shock.

Several standards can help guide users in evaluating the protection levels of ruggedized equipment. One is known as the "IP" (ingress protection) rating. That rating system assigns a two-digit number to each device. The first digit indicates the level of protection against ingress of solids such as dust, measured on a zero-to-six scale. The second digit indicates the level of protection against liquids, but on a zero-to-eight scale. So a data-collection terminal with an IP-68 rating would offer the ultimate in protection. Your office laptop, by way of comparison, would get an IP-00 rating.

A different safety rating system was developed by the industry group National Electrical Manufacturers Association (NEMA). That system measures protection against a variety of conditions, such as dust, falling dirt, splashing rain water, ice, and even hose-directed water. Though the NEMA ratings are similar to the IP standards, they are not entirely equivalent.

Individual manufacturers also have developed specifications that measure protection against drops and temperature extremes. Manufacturers usually describe resistance to drop damage in terms of a unit's ability to function after a drop of two feet or four feet to a hard surface, such as concrete. Temperature standards are defined as the ability to operate at temperature ranges that are likely to be encountered in environments such as cold storage facilities (minus 30 degrees C/minus 22 degrees F). Internal heaters usually are included in those devices to keep components at the optimum operating temperature while fighting the condensation that develops as the unit moves between cold and warm environments.

Yet another specification is the Intrinsically Safe (I-Safe) rating. This standard applies to hazardous environments that include flammable gases, vapors, or liquids that are common at such facilities as chemical plants, paint manufacturers, and refineries. The I-Safe standards indicate how safe it is to take a device into a specific environment; they measure the likelihood that a piece of equipment could start a fire from internally generated sparks. The I-Safe standards differ in North America and Europe.

It's not enough for ruggedized data terminals to be rough and ready—they also have to outlast most other types of electronic equipment. Whereas a conventional laptop, for example, might become outdated in two or three years, it's common for this type of equipment to have a much longer lifespan. "Our customers expect five or more years of service even if they write it off in three years," says Sorenson of LXE. "If it doesn't last five years, people would regard it as a failure. They look at it as an appliance."

That's certainly true for users like Geneva Lakes Cold Storage. "If we were replacing equipment every two or three years, I'd be looking for a job," says Riley. "We've been using this equipment for two-and-a-half years, and I'm very optimistic we'll get five years out of it."

It's not unusual for ruggedized terminals to stay on the job for considerably longer than that, says Ralph Lieberthal, director of vertical markets, transportation, at Symbol Technologies Inc. in Holtsville, N.Y. His customers typically get five to seven years of use from their equipment, although one of Symbol's major customers, FedEx, has a device that's been in use for 10 years, he says.

Because customers keep their equipment for such a long time, manufacturers must be prepared to service those models for years. "It's not comparable to consumer electronics," says Lieberthal. "If Compaq came out with a new iPAQ tomorrow, how do they service the old one? Our customers are not concerned about that.… They want long-term service and long product life," he explains.

The average replacement cycle for ruggedized units is eight or nine years, so users replace their equipment less often than they would other types of terminals, says Timothy Shea, senior analyst at market research firm Venture Development Corp (VDC) in Natick, Mass. They last so long, in fact, that many shippers still run DOS-based data on their ruggedized terminals.

Manufacturers are trying to encourage customers to replace their equipment sooner by weaning them off the DOS platform and getting them to buy Windows-based terminals. One way they are doing that is with pricing. Shea notes that base pricing for ruggedized equipment runs anywhere from 30 percent to 200 percent more than for standard models. The ruggedized market, though, is now experiencing some of the deflation that's rampant in the IT market at large. "The biggest shift is that we're seeing prices come down," says Shea. "If you're moving from a DOS-based system to Windows, you'll get a price that's lower than a few years ago."

Vendors also are trying to pump up sales by changing their products' life spans. Shea sees conflicting trends in this area, with some manufacturers moving to shorten the replacement cycle for their offerings while others are working to extend it. He doesn't believe the former strategy will prove to be very effective. "People are not going to replace something that is already in Windows," he says.

If anything is likely to have a noticeable impact on sales, it will be the DOS vs. Windows issue. "We're seeing movement toward Windows and away from DOS," Shea notes. "Some think there will be little if any DOS[-based equipment] in three to five years."

The extended replacement cycle masks the burgeoning demand for ruggedized terminals somewhat. Even in a down economy, when budgets are tight and companies are delaying replacing or upgrading most types of capital equipment, product demand has remained fairly strong.

That may partly stem from the units' reliability. Because the devices are less prone to breakdowns than are conventional terminals, companies are buying them to avoid interruptions in their tightly scheduled warehouse operations. "We continue to see a demand for ruggedized equipment, not just because companies want to avoid breaking devices, but also because they want to avoid being out of service," says Lieberthal.

A new market niche—"lightly ruggedized" equipment—also is spurring sales growth. "People coming to the market now from other segments are focused more on lighter duty," says LXE's Sorenson. More companies are finding that they need some shock or dust-proof equipment, for example, but don't need the fully ruggedized equipment that's required in extreme environments, he explains. Manufacturers are responding to those needs, and it's clearly having a positive impact on sales.

Whatever the reasons, analysts expect demand for ruggedized terminals will continue to grow. VDC, for one, forecasts sales growth at a compound annual rate of 10.2 percent from 2002 through 2007.

The combined market for ruggedized mobile computers totaled more than $2.9 billion in 2002, and is projected to reach $4.8 billion by 2007. That growth rate reflects the average for a variety of mobile devices, ranging from a low of 4.9 percent to as much as 23 percent for personal data assistants (PDAs).

In short, ruggedized data-collection terminals are sure to continue gaining in popularity. Despite their premium price tags, it's hard to argue with something that lasts for years, rarely breaks down, and works in environments where other computers don't even dare to go.

Robert Spiegel is a freelance writer who specializes in covering technology and the electronics industry.