German tech overall is superior so the Germans have been able to stave off every allied/soviet offensive to date. Germany however has passed below the 75% manpower level so quality will suffer to some extent. Some high tech unit investments have been made lately: SUB, TAC, ARM, leaders. There have also been a few more INF built as well. The Italians have built out all of their leaders.
Here's a view of the western defenses. The allied navy has disappeared from the USSR lend-lease convoy lines and from the Med so it's likely that the allies are forming up some huge invasion force and are using their navy to escort it. The U-Boats have been raiding the Soviet convoys and scouting the central Atlantic. They are about to sail out again. One U-Boat is tracking a very large (about 140 point) Soviet convoy so hopefully a combination of a BB + 4 SUBs can sink it when it gets close to England next turn. The other 3 SUBs will head back into the Atlantic as scouts.
You can see the 7 FTR's in central Germany that were withdrawn due to my breakage of the BJR house rule.
Britain, North Ireland, and Norway are garrisoned w/ 2nd rate troops. If the allies invade any of those the plan is just to delay them and let the 2nd rate troops (Italian, Hungarian, Bulgarian, Romanian, etc) die in place. Every turn closer to '45 is in the Axis' favor at this point, so all effort will be concentrated to defend Italy and France. In the unlikely event of an allied invasion of the Balkan countries (Greece, Albania, etc) it should be easy to stop them in the mountainous terrain there. Hopefully the allied invasion delays until some of the quarantined FTR's in central Germany are released.
In Britain there is only 1 reserve corp other than the troops garrisoning ports. In France every port is garrisoned and several counterattack units are in place (ARM, TAC). The next step is to place a couple more German infantry corps in Italy.