An asset monitoring and security system includes at least one asset and at least one user identification device assigned a unique identifier and operable to transmit an identification signal embodying the identifier over a wireless communications link. A data store maintains lists of the assets, users authorized to use the assets, and privileges associated with the assets for each of the authorized users. A control unit is adapted to receive identification signals from the assets and user identification devices and monitor positions of the assets and user identification devices within a defined area based on the identification signals. The control unit communicates with the data store and is further operable to initiate an alarm event when privileges associated with a given authorized user for a given asset are exceeded. Each of the assets includes a lock-out mechanism that impedes use of the asset when the lock-out mechanism is activated.