For U.S. manufacturers, China is the proverbial double-edged sword. On one side, China poses a competitive threat, influencing where and at what price things are made. On the other side, there is opportunity in those same conditions. It all depends on how the sword is wielded.

We've all known this, of course, but this year there appears to be mounting evidence that the sword is not being wielded as effectively as it needs to be in the U.S. The publication of three important works this year contributes to a growing perception that the industrial might of the U.S. continues to ebb.

The New York Times columnist Thomas Friedman's book "The World Is Flat" makes a convincing argument that the center of power has shifted to the East to a degree much greater than many people think.

A new book jointly published by the Manufacturers Alliance/MAPI and the Hudson Institute, called "The Emerging Chinese Advanced Technology Superstate," shows that China is moving quickly to become technologically competitive.

And a special report by BusinessWeek in August, the result of a five-month investigation by 18 reporters and editors, clearly depicts the growing power of what the magazine calls Chindia, a combination of the Chinese and Indian economies.

All three works suggest that the shift in the balance of industrial power is not only more pronounced, but it is also accelerating at a rate not fully appreciated. It would be easy to become alarmed by the trend; however, the U.S. continues to possess great strengths and potential in its ability to innovate, in its entrepreneurial culture, and in its desire to compete and win. The message I've gotten out of each of the fine works I've cited is that it really does come down to how skillfully the sword is handled. The problem has been that, on the national level, the sense of urgency needed to galvanize the country to use its strengths and potential effectively has been sorely lacking.

Perhaps the nation can only deal with one priority at a time. At this moment that priority is defeating terrorism. But if we don't at the same time find some way to develop a national will to deal with globalization and the growing competitive threat to America's industrial might, we may one day look back on this first decade of the 21st century as a time when it slipped away before our eyes.

That doesn't have to happen. There are things manufacturers can do right now to cope with the gravitational economic forces and the national leadership issue. The first thing is to rethink those business models and figure out where you will create value in the next 10 years. Along the way, become much better at processes -- all kinds of business and operational processes that can be made more efficient and better automated.

Next, become excellent in collaborating with partners, suppliers and even sometime competitors in everything you deem necessary, from design through logistics. Lastly, embrace advanced technologies fully. Get out in front of them. Small- and medium-size manufacturers, in particular, need to ratchet up their efforts in this area or risk being left behind.

You can take action in these three ways now. Don't wait for the man on the white horse. He may come too late, if he comes at all.