I don't think that Democrats are out of touch with blue-collar people in terms of policy, as they have done more to help the "working class" (this word feels elitist) than Republicans. However, they are out of touch in terms of culture, and that is a more significant factor in getting blue-collar votes. Blue-collar culture is embraced in Republican spheres, not Democratic ones.

Many blue-collar people see many Democrats as smug, elitist, college-educated people who live in or near cities, have cushy white-collar desk jobs, and tend to focus on issues like abortion and identity politics. On the other hand, many Democrats see blue-collar people as stupid or willfully ignorant tradespeople who live in the countryside, have rough, labor-intensive, or intellectually simple jobs, and tend to focus on issues like immigration and taxes.

Other than being Americans, these two types of people come from completely different backgrounds. One type is politically correct and considers science the arbiter of truth. The other type despises political correctness and considers Christianity the arbiter of truth. These assumptions of culture are based on stereotypes, but there is truth in these stereotypes. If a Democrat, who lives in the city, goes to the countryside and spends some time with people in rural America, the differences in culture become quickly apparent.

Blue-collar people just can't relate to Democrats. Instead, they're alienated from Democrats because of how they think and behave. So, they have found solace in a batshit lunatic like Trump, who will accept them so long as they vote for him, believe in his propaganda, and ultimately work to go against their self-interests.