Can I do this with Arduino?

Greetings,

In researching online for a need here at work, I stumbled across a radio-control vehicle forum that uses Arduino. Please forgive me if this type of application has been mentioned before and for being a noobie to the Arduino. Here is what I'm in need of:

We have approximately 16 machines that are serviced by a forklift. Right now, the machine operator needs to stop the machine, walk upwards of 50-100 feet to a wall-mounted handset, and call for the forklift operator on a two-way radio to come to the machine - doing this several times a day times the number of machines can have a significant impact on productivity. Instead of using the radio, I would like to mount a small box with a toggle switch at each machine, and for it to send a wireless signal to a panel mounted on the forklift, lighting an LED specific for that machine. The LED on the forklift should be lit for as long as the switch at the machine is turned on. Can I do this with Arduino, and if so, how?

Thank you in advance for your help.

Yes, you could do that.

The dominant cost will likely be the radio's and installation.

I would recommend looking at:

http://www.enocean.com/en/solutions/
e.g.
http://www.enocean.com/enocean_module_315mhz/ptm-200c/
http://www.enocean.com/en/energy-harvesting/
wireless technology first.
Their technology would significantly reduce the cost of installation.
You'd just need one arduino at the receiving end to decode and display the switches.

http://www.dealextreme.com/details.dx/sku.5127

there is a small issue with radios. you have to be sure that it does not interfere with your neighbours, I once was working with a traverse crane that was radio controlled and had a 10 ton load of steel coils when I got a radio-interference and a wild crane. Had to hit the emergency stop and call the authorities to find the source of interference, turns out that somebody got identical frequency crane control few hundred meters away.... open hangar doors...