Described are a system and method of recording piston rod position information in a magnetic layer on the piston rod. A piston rod moving with respect to a cylinder has a magnetically hard layer formed thereon to provide a recording medium. A magnetic pattern is recorded in the magnetically hard layer. A magnetic field sensor senses the recorded magnetic pattern while the piston rod is moving with respect to the cylinder and generates signals in response to the magnetic pattern that are used to determine an instantaneous position of the piston rod.