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I also lost a lot of armament factories.
In 1942 what you actually need is more men to use up all those armament points.
You can build some sappers and construction brigades. They will soak up some of this extra manpower in 1941 and will help you with digging fortifications and repairing rails during your winter offensive.

you may always disband some to get the manpower back. Also i like to disband a lot of stuff in 1941 to free up manpower and equipment for combat units. Air HQs, air bases, corps HQs, some support units. I only keep artillery Regiments, sappers and construction brigades.

Turn 27- December 18, 1941 (blizzard)

The Germans are continuing to give ground where they are out in the open. They appear to have a line of fortified zones where they plan on falling back to. There were 18 battles this week, 16 of which forced the enemy to retreat. Tula should be recaptured soon as Kalinin and Bryansk Fronts advance north and south of the city. By reviewing the German unit OOB at the start of the campaign, it's believed that AGN and AGC are using the Moskva River as their boundary. The enemy forces that are retreating in the Orel-Kursk zone is 6th Army.

Soviet forces slowly advance towards Moscow as well, but are not entertaining thoughts of recapturing the city during the winter offensive. To get back within 20-30 miles would be acceptable.

For the first time, T-34s appear in the production pool. There are 1,300 currently deployed.

The situation map of the Kalinin Front



Bryansk and Southwest Fronts



Southern Front

I wanted to bring an appropriate close to my 1st PBEM as it seems a number of AARs haven't had much activity lately and it's hard to tell whether games are still happening.  Warhunter and I agreed to end this game.  My esteemed opponent who taught me a great deal about how dangerous the solid German player is will be on extended hiatus until some game features see changes. 
 
For myself, I will be starting a new AAR soon as glvaca has agreed to try his hand with the Axis.  We have some additional but unofficial German victory conditions in the house rules that may make things interesting.  At least it is more than what they have now.  [;)]