I was a year into a war with Japan. They, all by themselves, had more than 2x the amount of battalions (?? the units that go into making a division; e.g., 7 infantry + 2 towed artillery) than I did.Do you see why I hadn't enough equipment??? I'm still on civilian economy after over 4 years of war!!! USA is fighting this war more as a hobby and is still winning!
Eventually, I realized that my low manpower was because I was still on the 2.5% setting. I upped it, and I couldn't produce units fast enough.