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.

The discussion of American manufacturing is often a muddled one, steeped in nostalgia for a bygone era and accompanied by a certain misty-eyed conviction that it is a sector in ceaseless decline. A new study from the McKinsey Global Institute adds some welcome clarity. In 184 pages, the global consulting giant presents a picture of manufacturing as among the most dynamic sectors of the U.S. and global economies, driving higher productivity and standards of living. But it also shows that what we usually think of as a traditional manufacturing job isn't coming back.

A new Urban Manufacturing Alliance (UMA) has been launched to accelerate the growth of urban manufacturing across the U.S. and to capitalize on the sector's ability to create stable, high-quality jobs.