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Special forces units will therefore be your best bet, followed by infantry-heavy tank divisions (i.e. more mobile infantry battalions than armored battalions in a division). Focus your heavy industry mainly on airpower, since it's probably the most manpower-efficient weapon you can build (even if it's less effective than ground forces), and focus on either defensive or maneuver warfare (encircle and destroy pockets of enemies, rather than just forcing your way past them).
Medium tanks are probably the most balanced tanks you can build, since light tanks have pretty poor armor for their comparable cost while heavy tanks are exorbitantly-expensive. Most of your ground forces though are probably going to be infantry and artillery, at least until your industry starts to build up.
Another way is to research the field hospital support company which lets you recoup a portion of your manpower combat losses.
Divisions are usually either cheap on manpower but heavy on industry cost or cheap on industry cost but heavy on manpower. I don't think there is a viable way of being cheap on both and still be useful (unsure of this, better ask someone who min-maxes).
7 Motorized and 2 Motorized Rocket Artillery, or 2 Self Propelled Artillery with Engineers, Recon, Field Hospital, and Maintenance Company is a bit more expensive in manpower and equipment, but is a lot faster at moving and would take reduced casualties.
If you have the industry, but low manpower, then a 5 or 10 Mechanized Template with Engineers, Recon, Field Hospital, and Maintenance Company are great for defense. They aren't bad at attacking, but they don't have the punch needed for most fights.
Also if you have the industry 2 or 5 tanks and 3 or 5 mechanized, with Engineers, Recon, Field Hospital, Maintenance, and Signal Company are great at attacking and still pretty good at defense.
You should always try to get a 10 or 20 combat width.
also as someone who loves playing minors (taking germany as greece, is one of my more proud experiences) here are some of the things that i do that may help you.
*i always go with support over line for a few reasons * which ive shamelessly ctrl Cd from a reddit post.
+ Does not take up width, allowing for more firepower per width on limited fronts and bad terrain
+ Does not slow down troop movement speed, so good on fast moving divisions
+ Does not impact terrain modifiers in a negative fashion, good for specialist divisions (Marines doing amphibious assault, mountaineers, etc)
+ Can be air dropped with paratroopers
the first point is the most important because you want that 20 width.I usually fill the support with arty, and engineers, under most circumstances, but if i can ill slide hospital, logistics, or sometimes AT but thats rare.
* use your mountineers.
* i always try to produce the best infantry weapons possible, you dont need that many because of the low population, this way they at least have a quality edge.
* when you join a faction, try not to cover the entire line, thats what the major nations are doing, you need to be the breakthrough force and win certain areas.
* your first techs should always be electronics and construction
* you get concentrated industry, because you literally wont have enough not to get bombed if you go the other road.
*get your other research slots unlocked ASAP, once you do, use faction research.
Explanation:
In addition to low manpower and industry, you probably only have 2, maybe 3, research slots. Those research slot initially need to be used for electronics every chance you can to speed up research, and industrial to increase the productivity of your industries.
National Focus is important in the early stages. Do you go the industrial tree to pick up industry and eventually another research slot, Army to get speed ups researching ground technologies, or the political tree to turn facist for the manpower pool, communist for the political points to hire more advisors faster, democratic to eventually join the Allies, or just leave it be.
If you want to absorb other minor countries around you, you need to change to either facisim or communism. As a democracy, you can't easily justify wars. Doing that research on the National Focus rules out early industrial build up or army improvements. Focus civilian industry on building more military factories only. You will conquer the civilian industry to build up that area, not to mention additional military factories and shipyards.
So you start with what you have available. Most likely basic infantry, cavalry, engineers and artillery, which require rifles, support equipment, and artillery pieces. If you don't have tungsten available, trading for some will cost you valuable industry, so scatch that initially. This leave you with infantry and cavalry supported by engineers.
The standard build with these limitation is divisions of 10 infantry or 10 cavalry with support engineers. This allows 4 divisions with combat width of 20 to fight a battle. 8 units would allow 5 divisions with a combat width of 16 in the battle.
You will be overextending your production just building rifles and support equipment to build an army you can win with, which is why the industry research and building military factories are so important.
When not researching electronics or industry improvements, bring your infantry and support weapons up to date, research support recon and research a land doctrine. With no mobile units or artillery, Grand Battleplanning or Mass Assault are the choices that would benefit you most.