Yes, but it was not the front wide withdrawal being talked about her. What Manstein wanted to do was to withdraw small sections of the front just before the Soviet hammer fell. The Infantry would be pulled back to present a solid undisrupted defence....the Soviet hammer would fall on largely empty space, and then the Panzers would, if the situation was favouraqble, undertake powerful but localised counterattacks. The idea was to cause higher attrition on the Soviets, and thereby wear them down by a process of attrition.
But there were a number of issues that prevented this approach from ever being adopted. In order for this system to work, the German command system needed to be far more flexible than it had been through the recent Stalingrad debacle. Specifically that meant that hitler, and OKH needed to allow the commanders on the spot much greater freedom of decision than they possessed. This never happened, and the outgrowth of that inflexibility was the Bagration debacle (to the north of AGS).
However the Germans also nereded to look at their procurement machine. They were concentrating on the heaviest and most advanced tanks, which I think was a mistake, given all the other shortages plaguing the Heer at that time. I agree with Rommels assessment, he advocated producing bucket loads of Stugs and AT guns instead of the Tigers and Panthers that were being concentrated on at the time. A Tiger cost 300000 RM to field, a panther 185000. A Stug III cost just 52000 and a PAK 75 (towed) cost just 12000. I think Russian attrition would have increased many times over, if the germans had concentrated their efforts on these less glamorous weapons
But the other thing that was sorely needed weas Motor transport. There was no easy fix here, but I think the full implemkntation of the Shcnell plan in 1939, which would have standardised truck production on just a few types, might have helped. I also think that if the germans had managed the occupied territories a little better, they may have derived some benefit from their production, But their economic exploitation of them, chiefly by setting the exchange rate to Germ,any at artificially low levels. made it uneconomic to use the production capacities of the occupied territories all that much