One can be hopeful about the future of manufacturing in the U.S. for a fundamental reason. It is the economy best positioned to seize on deeper changes that can lead to a real, sustainable manufacturing renaissance, one based on software technology and its profound effect on the entire manufacturing value chain.

A new econometric forecast model shows there is ample potential for U.S. manufacturing to resurge and, by 2025 add a significant number of good-paying manufacturing jobs, add to GDP growth, and help create the first surplus in the nation's goods and services balance of trade since 1975.

Once one accepts the importance of manufacturing, the next question is how is it doing? Is U.S. manufacturing healthy and not in need of a national manufacturing policy or is it in trouble and in need of smarter policies?