1. A sensor assembly, comprising: a sensor operable to sense a physical parameter and generate an electrical signal responsive to the sensed physical parameter; and local processing circuitry physically positioned proximate the sensor and electrically coupled to the sensor, the local processing circuitry including an output port adapted to be coupled to a communications channel and the local processing circuitry operable to process data from the sensor to generate processed sensor data and to provide the processed data on the output port.