There is an emerging consensus that existing layout configurations do not meet the needs of the multi-product enterprise and that there is a need for a new generation of factory layouts that are more flexible, modular, and more easily reconfigurable. In this article, we offer a review of state of the art in the area of design of factory layouts for dynamic environments. We report on emerging efforts in both academia and industry in developing alternative layout configurations, new performance metrics, and solution methods for designing the "next generation" of factory layouts. In particular, we focus on describing efforts by the Consortium on Next Generation Factory Layouts (NGFL) to address some of these challenges. The consortium, supported by the National Science Foundation, involves multiple universities and several manufacturing companies. The goal of the consortium is to explore alternative layout configurations and alternative performance metrics for designing flexible and reconfigurable factories.1