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It was probably a factor, but I don’t think a significant one. You could make the argument that if they made more mass-producible armor that they could have put more on the front, but that would have likely further strained the serious supply line issues they were facing. They also were hurting for industrial materials and fuel, so just building more wasn’t really in the cards.
It was, especially by mid-war a no win scenario for German tank production. They could mass produce only Panzer IIIs and run out of material and importantly crews, or they could swing heavy into making super tanks and not have enough of them to do anything of value.
Both were bad choices that couldn’t be fixed by engineers.