This paper describes and analyzes the establishment of an automation SME cluster. The cluster aims to strengthen the participating companies’ as well as the region’s competitiveness by offering flexible automated production solutions. It was observed that the combined know-how in the cluster could match the future needs of customers, and that leverage could be obtained if the cluster proceeds in its ambitions to use the collected production technology competence. However, the major challenge will be to find collaboratively developed automated solutions between customers and suppliers that are favorable both for individual companies and the longterm development of the cluster.