It certainly looks like things are heading that way. German and Japanese auto companies have been laying off tons of workers and the US isn't far behind. Sales are dropping for autos produced everywhere but China, where production costs are so much lower.
That is more devastating for Germany & Japan where auto related industries make up a much larger percentage of their GDP than is the case in the US, but still has very bad ramifications for the US. If things continue on as they have been it will certainly adversely affect manufacturing in general... such as for the military.
https://youtu.be/wEfXhJ34_9g (13:35)