Small and medium-sized mechanical engineering enterprises (SMEs) in Ukraine face a number of Force Majeure-related challenges in transforming part of their value chain into smart manufacturing with modern digital solutions. As SMEs are the backbone of developing economies, it is important to understand their challenges and orientate the pathways to address them. Statistical analysis and overview of trends and ways of development of Ukrainian engineering SMEs on the basis of digitalisation was presented in the article. The processes characteristic of modern Ukrainian SMEs, including possible characteristics of SMEs and necessary prerequisites for their European integration were analysed. Recommendations for the implementation of digital innovations for Ukrainian engineering SMEs in the coordinate system “investment-efficiency” have been developed. Examples of the implementation of the developed recommendations in the production space of Kharkiv region SMEs are presented. This paper contributes to the existing literature with a statistical analysis of data on the development of Ukrainian industry in general and engineering SMEs in particular, as well as an overview of the challenges faced by Ukrainian engineering SMEs in transforming the value chain into intelligent production. The article is of interest to SME managers in determining the process of transformation of engineering enterprises with consideration of ensuring their sustainability under force majeure circumstances.