keep in mind the Fedsuns converted a lot of industry over to civilian products.. its possible that a lot of those lines weren't in high output and much of the rest of the industry was making industrials and stuff.
That doesn't make sense. The Draconis March has been at war since 3100. A civil war and the Draconis Reach thing. If any factories were making toilet paper, they wouldn't after 3100.
This isn't the Clans, DC, or CC. The Sandovals don't necessarily have the authority to order factories to make military equipment. If the company sees more profit in making IndustrialMechs instead of BattleMechs, they're probably going to do it (especially since the First Prince was all in on the Pax Republica bit).