Adapting manufacturing systems to new principles and technologies is an important measure to stay competitive and to strive into the future. It is a challenge for the entire organization and not only on the production floor. The purpose of the article is to illustrate the conditions for companies in the Swedish wood products industry in the transition towards sustainable and smart manufacturing based on three case studies: a furniture company, a wooden house manufacturer and a company manufacturing interiors and shop fittings. Key personnel has been interviewed, and secondary data gathered. The companies are characterized by a low degree of automation and digitalization. The technology maturity in the wood products industry varies a lot: From integrating partly outdated production processes and machinery mixed with modern lean production philosophies. The manufacturing process is knowledge-intensive and tacit facing problems with generation shifts and competence supply. The results imply that the Swedish wood products industry should consider improving product and production process designs, as well as changing supply chain integration. Automation and digitalization are in regards to these changes a viable way forward in combination with a clear strategy. The skills required for future wood machining operators will also transform from mainly manual work to automated and digitized tasks.