The presentation discusses factories of the future and how innovative production technologies can enhance productivity and manufacturing. It focuses on four main technological challenges: ICTs like robotics and automation, virtual factories, adaptive production, and high-precision manufacturing. Factories of the future aim to be green/sustainable, close to customers, collaborative in value chains, and human-centered. Several EU projects were highlighted that develop technologies for advanced manufacturing processes, mechatronics, information and communication, and minimizing defects. The overall goal is to achieve economic, social, and environmental sustainability in manufacturing.