Manufacturers waste time and money every day on assets they can’t locate, equipment that sits idle, and emergency repairs that shut down an entire line. Asset tracking is a modern solution, a frontline operations tool that provides total awareness of location, condition, and usage data, using it to inform maintenance and procurement decisions.
Research shows that asset tracking manufacturing is expanding rapidly, projected to grow from roughly $26B in 2025 to $59.6B by 2032.
This article explains what asset tracking is in manufacturing and why it’s essential to understand the metrics that improve when done correctly and tailored to your business needs. This way, you can make an informed decision to prioritize asset tracking in your operations.
What Does Asset Tracking in Manufacturing Really Mean?
To understand the importance of manufacturing asset tracking, you should first comprehend the processes that occur behind the scenes. As the name suggests, asset tracking involves monitoring the location, usage, and condition of a business’s physical assets throughout their entire lifecycle.
Manufacturing assets come in various sizes and shapes. Using systematic methods and technology ensures operational efficiency and safety. Modern asset tracking in manufacturing employs both hardware and software technologies to monitor assets throughout the sector. The technologies involved in asset tracking and manufacturing are all vital because they help enhance inventory management.
For example, an electronics manufacturer uses Bluetooth Low Energy (BLE) tags for their handheld tools and forklifts. This system logs when one tool is checked out and when it’s returned. With this technology, the manufacturer prevents theft or loss, speeds up audits, and significantly reduces the cost of replacing tools that go missing.
What Are the Benefits of Manufacturing Asset Tracking?
Asset tracking is a practice used in many industries. Since assets are the most costly components of a business, most successful manufacturing companies rely on systematic asset tracking to maximize operational efficiency, ensure full utilization, and achieve a good return on investment. Some benefits of asset tracking in manufacturing include:
Gaining Asset Visibility & Utilization
When manufacturing asset tracking is implemented correctly, you gain real-time data on each asset’s location, condition, and status. Through continuous asset monitoring, companies optimize asset utilization. All this collected data helps managers decide when to schedule inspections and address maintenance needs. This ultimately keeps equipment in working order longer, reduces asset downtime, and prevents overstocking, underutilization, or overutilization.
Lowering Operational Costs
Effective asset tracking in manufacturing can significantly reduce unnecessary costs by preventing asset misplacement, equipment failures, and theft. A systematic approach ensures assets remain proactive, reducing downtime and directly boosting profitability. A recent study by IBM found that visibility into assets across all enterprise sectors can improve maintenance productivity by 28% and cut inventory maintenance and repair costs by 18%.
Regulatory Compliance & Reporting
Monitoring assets to check for regulatory compliance is a crucial aspect of asset management.
The process involves having a transparent understanding of the company’s owned assets, lifecycle records, and how they are being utilized.
Regulators must ensure that equipment has been inspected, calibrated, and operated within the mandated limits. If asset tracking is implemented correctly, it can save hours of manual paperwork during inspections and reduce the risk of fines or shutdown.
At a minimum, your asset tracking records should include:
- Asset identifier: (tag ID/serial) and asset type
- Location history: (time-stamped location changes) and geofencing events
- Status & usage: (hours run, on/off state, operator ID)
- Maintenance & calibration history: (work order ID, who performed it, before/after condition)
- Sensor telemetry where relevant: (temperature, vibration, humidity, pressure) with timestamps
- Audit trail & tamper status: (who changed a record, when, and why)
- Firmware/firmware-version and device health: (for IoT tags)
What Technologies Are Used in Manufacturing Asset Tracking?
Before the modern era of asset tracking, manufacturers had to manually track and monitor assets using paper-based sign-outs and inventory counts. Thanks to technological advancements, this process has become easier and more automated.
To acquire real-time data on asset status, new asset tracking for manufacturing solutions uses technologies such as:
Radio Frequency Identification Tags (RFID)
RFID tags, also known as RFID chips, utilize radio waves to store information and data on the assets’ whereabouts and whether they’re in use at the moment. RFID chips can also inform a facilities manager which teammate is closer to an asset that needs urgent attention. Forbes reported that Walmart, a retail giant, also uses RFID technology, which has significantly enhanced its inventory management.
Bluetooth Low Energy (BLE)
BLE asset tracking devices manufacturers choose as a practical technology for monitoring their assets, send regular signals in the 2.4GHz ISM band that smartphones are able to read. There are two main types of BLE, each with its distinct use case:
- Fixed BLE Beacons: battery-powered beacons are placed around the site to send out short signals that only nearby trackers can detect. These trackers then send the information to the cloud through 4G or 5G networks. Sometimes, they even combine GPS and Wi-Fi to make the positioning more accurate in both indoor and outdoor environments.
- BLE Gateways: Wireless BLE gateways are installed in key locations to collect data from nearby tags and send it to the cloud via 4G or 5G. They are also equipped with built-in GPS, making them an excellent choice for vehicles in motion.
Barcode Scanning
Barcodes are the standard when it comes to asset tracking that manufacturing companies use. They are, as the name suggests, data in parallel lines with varying widths, spacing, and sizes. Barcodes are attached to larger physical assets to give them a unique identifier and are decoded by barcode scanners. Many of the companies in the manufacturing industry use RFIDs connected to cloud-based software to help them manage their assets. Most smartphones support apps equipped with scanning, making barcodes a scalable and inexpensive option.
Internet of Things (IoT)
IoT is a network of interconnected sensors and devices that are affixed to specific assets, which collect and exchange asset tracking data to a database over the internet. What they can basically do is detect assets’ characteristics and equip maintenance teams to prevent asset downtime due to sudden and unplanned failures or malfunctions.
How to Set Up an Efficient Asset Tracking System in Manufacturing?
Many companies are concerned that implementing an asset tracking system manufacturers use in their manufacturing operations may disrupt the current system. What they don’t know is that asset tracking is actually a production improvement project, not an IT “big bang.” It takes time, so you start small, measure, and scale.
Below, we will provide a low-risk, actionable playbook you can adopt:
1. Choose the right pilot: Begin by testing asset tracking on a limited scale, rather than across the entire factory. Select a clear use case where results are easily measurable. e.g., tool crib tracking (high search time), standby generators (rental/idle costs), or a high-value rented fleet. Keep the pilot confined to one building or even a single shift to minimize disruption. According to IoT Analytics, the average annual cost of asset tracking is approximately $110 per asset, which can be used as a benchmark to estimate the return on investment.
2. Tagging & device selection: Determine the type of technology you want to use based on your asset and environment. For example:
- arcodes/QR codes work well for cheap, consumable items.
- Passive RFID is suitable for large batches of items stored indoors.
- BLE (Bluetooth Low Energy) or RTLS tags are better if you need real-time visibility on the shop floor.
- GPS/cellular trackers are best suited for factory asset tracking, such as trucks or containers that leave the factory with the assets.
To ensure the asset tracking manufacturing plan works for you, check for basics like battery life, durability (IP rating), how the tag can be mounted, and whether it has tamper protection. Also, make sure to ask for a few sample units before making a big purchase.
3. Connectivity & integration plan: Asset tracking is more than just tags. The data should move smoothly and effortlessly through systems. Think of it as a chain: asset → gateway → platform → your ERP or maintenance system (CMMS).
Decide what each tag will send and ensure the software platform you use integrates easily with your existing systems via APIs (the connection points between applications).
4. Operational runbook & training: It’s essential to document standard operating procedures like who tags new assets, check-in/check-out flows, maintenance triggers, and the responsibility matrix. This helps employees stay on the same page and learn how to use the system more efficiently. You should also run short training sessions for each shift and hand out an easy reference guide or “cheat sheet.”
5. Measure results & scale: At the end of the pilot, check whether the system is actually delivering value. Look at metrics like:
- How much faster can workers find tools or machines?
- Whether inventory accuracy has improved.
- Whether the mean time to repair (MTTR) has gone down.
- If any theft or loss was prevented.
If the results are positive (for example, cutting search time by 40–50%), expand the program step by step across other teams or asset types. Use the pilot data to estimate total costs and benefits before implementing the change plant-wide. That way, scaling is based on objective evidence rather than assumptions.
Smarter Asset Tracking for a More Efficient Future of Your Company
Asset tracking goes beyond only knowing where your tools and machines are. If done right and efficiently, it can save you time and trouble, cut costs, and keep your production up and running. Start small with a pilot project, choose the proper tags and technology to track your assets, integrate the data into your current systems, and finally train your employees. By doing so, you can see real improvement and results within just a few weeks of asset tracking manufacturing implementation.
At Sicuro Technology, we aim to help businesses reach exactly that. The asset tracking solutions we offer are designed for real-world environments and equipped with GPS, BLE, RFID, and 4G/5G connectivity. All of which gives you clear visibility of your equipment and vehicles. With features like real-time monitoring, customizable alerts, and easy integration with your fleet management systems, we make it simple to reduce downtime and maximize asset performance.
The future of manufacturing is built on visibility and control. Every asset counts, so manage them smarter and make asset tracking simple, reliable, and effective with Sicuro!
Discover Sicuro’s Asset Tracking solutions
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Frequently Asked Questions
Asset tracking in manufacturing is the process of monitoring the location, condition, and usage of physical assets such as tools, machinery, and vehicles. By using technologies like RFID, BLE, GPS, and IoT, manufacturers gain real-time visibility that reduces downtime, prevents losses, and improves operational efficiency.
Because assets are the backbone of production. An asset tracking system helps prevent costly downtime, reduces losses from theft or misplacement, cuts unnecessary maintenance costs, and ensures compliance with regulations. In short, it turns hidden inefficiencies into measurable savings.
The cost varies depending on the type of technology (barcode, RFID, BLE, GPS), number of assets, and system integrations. According to IoT Analytics, the average cost is about $110 per asset per year. Many companies recover this investment quickly by reducing downtime, losses, and repair expenses.
Not at all. Implementation usually starts small, with a pilot project focusing on a specific asset group (like forklifts, tools, or rented equipment). Once proven effective, it can be scaled across the factory. Training is minimal, and most systems integrate smoothly with existing ERP or maintenance platforms.
It depends on the use case:
- Barcodes/QR codes for consumables and low-cost items.
- RFID for batch items stored indoors.
- BLE beacons for real-time shop floor tracking.
- GPS/cellular trackers for vehicles, containers, or assets leaving the factory.
Choosing the right mix ensures cost-effective and reliable monitoring.
Asset tracking systems keep digital records of each asset’s lifecycle from calibration and maintenance history to operator use. During inspections or audits, data can be pulled instantly, saving hours of manual paperwork and reducing the risk of fines or shutdowns.
Studies show that asset visibility can improve maintenance productivity by 28% and reduce repair and inventory costs by nearly 18%. Most companies report faster search times (up to 50% reduction), lower losses, and better resource utilization within months of implementation.
Sicuro provides end-to-end asset tracking solutions built for real-world factory conditions. With GPS, BLE, RFID, and 4G/5G connectivity, Sicuro helps manufacturers monitor assets in real time, reduce downtime, and maximize performance all while integrating seamlessly with fleet and production systems.
