How much of that was due to lack of raw materials, or just having their factories bombed constantly? Other countries, even England didn't have to deal with that much bombing. I admit I don't know too much about the civilian side of Germany during the war. So I am curious what the problem was with their industry if not the above mentioned things.
Read
Deutschland im Zweiten Weltkrieg, the 'semi-official' history of Germany in the Second World War, Volume V on the economy. Germany certainly had a raw material problem, especially alloying metals and oil, but the two major problems were manpower and especially Trained manpower for industry, and their production methods. As early as 1941 they simply did not have enough workers for both industry and the military, especially when they formed over 200 divisions for the attack on the USSR, enlisting or drafting 8 million men, and then got stuck in a long war so those men could not be returned to industry as they had planned. Making this problem worse was the structure of German manufacturing, which relied on generalized machine tools and experienced machinists who, using the proper jigs and templates, could use those tools to make almost anything. That made German factories very good at reacting to changes, like modifications of aircraft and tank models, but woefully inefficient at sheer volume production compared to the 'American System' of very specialized machine tools each doing only one thing, but attached to a moving production line so that they did the same thing for dozens or hundreds of products a day. Since major Soviet factories used the same system (several of their largest tank tractor factories were, in fact, designed and built by American engineers) the efficiency of production was all on the side of the democracies and the USSR.
Making it all worse was German engineering of military equipment, which made every effort to get the most powerful weapons and no effort at all to manufacture weapons that were reliable. The average German tank unit had about 2 out of 3 tanks working on any given day; regardless of enemy action 1 tank was always under repair out of 3. Any American Army tank battalion with that kind of maintenance efficiency would have resulted in the battalion commander and his motor (maintenance) officer getting relieved or court-martialed. Put another way, the Germans managed to manufacture 1802 Tiger or Tiger II heavy tanks during the war, and famously it was considered that it took 5 Allied tanks to successfully knock out a Tiger. But since only about 1200 of those tanks was actually combat ready at any moment, it only took 6000 Allied tanks to center all the Tigers, or less than 2 months' combined production from the USA and USSR.
It was no contest, especially since by the time they were manufacturing the Tiger II in 1944, Germany was running out of supplies of Molybdenum and Chromium (normally imported through Portugal, but the Allies had cut off the supply) - and those two alloy metals are required to manufacture good armor plate - when the Red Army tested a captured King Tiger (Tiger II), they found that its armor plate was noticeably inferior to armor manufactured just a year earlier.
Downward spiral, here they come. . .
Except Spain historically had a serious problem protecting its treasure fleets.
A considerable percentage of the 'Spanish Armada' in fact, was Portugeuse, because Spanish-only shipbuilding and manning simply wasn't sufficient to produce such a fleet on their own.
I just accept that any leader with that agenda will never be my friend... 
