ENThe impact of technological advances is being felt in all industry sectors; thus, there is no doubt that digital transformation will significantly affect the Lithuanian manufacturing sector. In order to assess the extent to which companies in the Lithuanian processing industry are digitalized, an in-depth descriptive analysis of installed digital technologies in these companies was executed. The goal of this analysis was to determine whether Lithuanian companies in the processing industry have been sufficiently digitalized and are ready to completely adopt the principles of Industry 4.0 in the installation of digital solutions within all segments of value-chain creation. Research on the digital tools and technologies that have already been applied in these companies was performed during the phase of analysis. A comparative analysis of EU countries was also performed, during which countries were analyzed by criteria such as changes in production outputs and number of employees, changes in the share of manufacturing in GDP, share of high-tech sectors in total manufacturing output, level of capacity utilization, share of employees in the manufacturing sector in total employment, personnel costs, and wages. There was also an attempt to define the most digitalized processes of operation and the least (or non-) digitalized processes of operation in companies. After the assessment of the current digitalization level in the company, there was an attempt to clarify the strengths and problematic challenges as well as the underlying reasons for these challenges. After the above-mentioned data was collected, recommendations on which additional tools and means to apply in order to encourage the process of digitalization in these companies were formulated and passed on to the companies. Keywords: digitalization, employment, manufacturing sector, competitiveness. [From the publication]