CNN Money's Parija Kavilanz reports that U.S. manufacturers have seen increased business of late.  That's the good news.

However, many manufacturers also reports that banks aren't lending them money to "ramp up production" in order to meet increased demand for product.

Kavilanz says that a recent survey of small to mid-sized manufacturers showed 26% reporting "lack of capital to grow" as the biggest challenge they face.

The question is how to rectify the problem:

Banks, aware of a domestic manufacturing resurgence, say they're willing to lend, according to a range of regional and national financial institutions CNNMoney talked to. But they are proceeding with caution, especially with loans to smaller contract manufacturers or "machine and job shops."

The Alliance for American Manufacturing (AAM) has consistently urged increased access to capital as one of the key points of a coordinated national manufacturing strategy.

Read more.