Increased resource efficiency and circular economy among manufacturing industry could help to turn sustainability into economic value while simultaneously supporting policy objectives set to decrease CO2 emissions. Overall, this will require changes in organizational strategies, fast uptake of new technologies and skilled workforce. The paper investigates the status of the Finnish manufacturing industry in the uptake of both practices in product design and production, development and future needs in resource efficiency and circular economy in terms of research, skills and investments. A total of 38 Finnish manufacturing companies (18 small and medium size enterprises) answered the survey. The results show that overall Finnish industry considers that the uptake of resource efficiency and circular economy is in at a good level. However, respondents were able to identify several enablers and barriers that could further facilitate the transition towards sustainable manufacturing. Finally, the paper investigates collaboration needs of the manufacturing companies with research organisations and universities in several different sustainable manufacturing technologies such as material efficiency. In the discussion part a collaboration model between a Finnish university and regional manufacturing industry companies is represented and regional testbeds supporting twin transition will be discussed in detail.