A cost-effective and accurate method to add or change sensors in an automated manufacturing line is essential in order to increase the flexibility and adaptability of production systems. In particular, small to medium enterprises (SMEs) and companies offering custom solutions can only compete in the highly interconnected age of Industry 4.0 if their operations are agile and dynamic. This paper presents a new, low-cost solution to this problem through the development of a Smart Sensor Box. The paper introduces the benefits of this highly adaptable system comparing it to currently available solutions, while testing conducted demonstrates the solution’s accuracy and repeatability. The layout and operational capabilities for three versions of the Smart Sensor Box are discussed in detail and example applications are presented.