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Industries can benefit a lot from integrating sensors in industrial plants, structures, machinery, shop floors, and other critical places and utilizing their sensing and monitoring power, communicating and processing abilities to deliver sensed information. Proper use of wireless sensor networks (WSNs) can lower the rate of catastrophic failures, and improve the efficiency and productivity of factory operations. Ensuring reliability and providing adequate security in these crucial services provided by WSNs will reinforce their acceptability as a viable and dependable technology in the factory and industrial domain. In this paper, we examine the reliability and security challenges of WSNs and survey their practicality for industrial adoption. We discuss the unique characteristics that distinguish the factory environment from the rest, elaborate on security and reliability issues with their respective solution measures, and analyze the existing WSN architectures and standards. A number of challenges and interesting research issues have emerged from this study and have been reported for further investigation.