Yeah, there's laws that prohibit manufacture of certain military equipment and items outside of the US. While the Federal government certain did things to enable offshoring, and the MIC has done shady shit in the past, hollowing out the private industry sector isn't something the MIC wanted, encouraged, nor enabled. In fact, the MIC has been complaining about the offshoring of a lot things because it actually makes their ability to maintain their supply chains as well as reducing the number of skilled industrial labor in the US they need to draw from.
Remember: Clinton hated the Military and the MIC. It wasn't until Obama that the MIC started leaning towards Democrats and wokeness, which happened in large part because Obama purposefully politicized procurement and the military in ways to reward Dem patrons and punish Republican leaning corporations.
But enabling offshoring and the government structures put in place to do that? That was all set up under Clinton.
I haven't looked into it, but it sounds plausible. As recently as Bush there was at least some Republican connection to the military. Its always a bit tempting to think how things are now has been how its always been.