We present a nano-electromechanical system based on an individual single-walled carbon nanotube (SWNT) demonstrating their potential use for future displacement sensing at the nanoscale. The fabrication and characterization of the proposed nanoscaled transducer, consisting of a suspended metal cantilever mounted on top of the center of a suspended SWNT, is presented and discussed. The displacement of the nanoscale cantilever is detected via the electromechanically induced change in conductance of the strained SWNT. A relative differential resistance sensitivity (for a metallic SWNT) of up to 27.5%/nm was measured and a piezoresistive gauge factor of a SWNT of up to 2900 was extracted.