It's amazing to me that opinions regarding the quality German weapons and war making ability on this board typically vary between wildly exaggerated and ignorantly dismissive. As CalBear points out, Germany was basically an average central european nation which lacked the production capacity of its enemies.
There is a small mystery. Germany produced significantly more steel than the USSR over 1941-2 but significantly fewer tanks, guns, ammunition etc. The two theories to explain this were inefficiency (Overy and others) and the need to prepare for a confrontation with the Anglo-Americans in 1944 (Tooze). Certainly there was huge investment in building plants to make synthetic fuel and rubber over 1941-2. A central question is whether more tanks in 1941 could have captured oil fields which would have made the synthetic program unnecessary. It would certainly have been possible to build at least twice as many tanks.
Its military establishment had average capabilities, average openness to innovation, and average leadership.
However, sticking to tanks, Germany did have in Heinz Guderian a genius who wanted more and better tanks in 1940. Hitler was also convinced. Someone managed to screw up the decision making. Most obviously, Hitler was unhappy when he found that the PzKW III had the 50 mm L42 rather than the L60 that he believed had been agreed.