Factories and Profit help

[cpyorch]

I bought the game some months ago but I still cant figure out factories quite well.
How do i profit from having factories in green numbers, if that money goes directly to the POPs?
In what way does industrialization benefits me as the player?
thanks and please excuse my english

[A Salty Weeaboo]

Industrialization affects your over all score. Having a good industry could be the difference between being a great power or not. It also affects what you have on the market, if you produce an excess amount of a resource, it goes to the market, which means that your pops make more money by selling them on the market, which in turn means a higher tax output, which means more money for you. It can also help you produce railroads, buildings, units, and basically everything else. So if you are producing Steel, all of the steel produced will go to you construction first, then if there is excess, it will go to the market. Hope this helped, if you have any other questions about the game, feel free to add me.

[Tanetsu]

It is also good to remember that in the early game artisans are more profitable, because of low industry tech. Also if you want to maximize factory efficiency, you should build industry in provinces according to provincial RGOs. For example if your province produces coal, you should build cement or steel factory there since coal will provide bonus to factories production.

So my piece of advice is that always check provinces resources before building factory there, if your economy policy allows for player build factories. This result to more efficient industry and thus more industry score.

[A Salty Weeaboo]

Also, I'd recommend going for a party that promotes Lazzeiz-Faire. It starts off very very slowly early game, but by the 1880s your economy will be booming, and you won't need to worry about subsidizing factories or building them. Capitalists will do all of that for you

[Tanetsu]

Originally posted by Alexander Alexandrov:

Also, I'd recommend going for a party that promotes Lazzeiz-Faire. It starts off very very slowly early game, but by the 1880s your economy will be booming, and you won't need to worry about subsidizing factories or building them. Capitalists will do all of that for you

I think it's good choice to start the game with state capitalistic party since it let's the player build first factories and control the industrialisation since depending on country there may not be enough capitalists to start factory building. But they are indeed worthy option in late game when there is large amount of factories. This of course means you have to have right party in power and subsiding isn't that bad since you pretty much are swimming in money no matter what.

This is why my favorite parties are interventionistic ones, which are almost like laissez-faire ones but with possibility to support ''critical'' and failing factories so you can have more money from employed POPs than you would have from unemployed ones and also keep the industry score high all the time. Since laisse-faire causes score drop at the beginning.

Just my thoughts so feel free to disagree

[A Salty Weeaboo]

Originally posted by Random:

Originally posted by Alexander Alexandrov:

Also, I'd recommend going for a party that promotes Lazzeiz-Faire. It starts off very very slowly early game, but by the 1880s your economy will be booming, and you won't need to worry about subsidizing factories or building them. Capitalists will do all of that for you

I think it's good choice to start the game with state capitalistic party since it let's the player build first factories and control the industrialisation since depending on country there may not be enough capitalists to start factory building. But they are indeed worthy option in late game when there is large amount of factories. This of course means you have to have right party in power and subsiding isn't that bad since you pretty much are swimming in money no matter what.

This is why my favorite parties are interventionistic ones, which are almost like laissez-faire ones but with possibility to support ''critical'' and failing factories so you can have more money from employed POPs than you would have from unemployed ones and also keep the industry score high all the time. Since laisse-faire causes score drop at the beginning.

Just my thoughts so feel free to disagree

The only problem with state capitalism in this game is that when factories are built, they are automatically subsidized, and personally I always forget to turn that off, and dont even mention late game. So by the time I do switch to lasseiz-faire, all of the factories go bankrupt. That's just me though

[Tanetsu]

Yeah i know the feeling, that is one of those reasons i mainly use interventionist parties since i can subside only the failing industries, so i can avoid that bankruptcy wave. Since even if you subside them all in the menu, only the insolvent factories are actually getting subsided, since the profitable ones are paying for their upkeep themselves or atleast i think it works like that.

Only time i switch parties is when i want some specific factories build(tanks, aeroplanes etc so i switch to state capitalistic party, since those capitalists can sometimes be pain in the arse, when it comes to building right factory in right state.

[vidkunquisling]

well what do you want to do in your playthrough?

if the factories makes money that means more taxes for you without increasing the rate, and the populace is happy and won't rebel. they'll also expand your industry.


if the factories aren't making money then they go bankrupt, that's ok but it takes some money.

if you subsidize them you lose money but people are happy, ultimately it'll ♥♥♥♥ your economy up because your economy won't be efficient.

[Tanetsu]

Originally posted by Vidkun Quisling:

well what do you want to do in your playthrough?

if the factories makes money that means more taxes for you without increasing the rate, and the populace is happy and won't rebel. they'll also expand your industry.


if the factories aren't making money then they go bankrupt, that's ok but it takes some money.

if you subsidize them you lose money but people are happy, ultimately it'll ♥♥♥♥ your economy up because your economy won't be efficient.

Industrial subsidies (from victoria 2 wiki)
This allows the government to guarantee that a factory will not run a loss: any negative difference between income and expense is made up by the government. Subsidies are only applied when a factory is running at a loss. Subsidies are controlled per factory from the production screen; this figure shows the total amount spent on them.

Also if you want to check which factories are you subsiding check the economy tab and hover over industrial subsides and it will show you the specific factories and how much they need money. After that you can always shut down them to save that money.

The main reason for factory going bankrupt is probably over production and price decrease of that specific product, so the factory can't afford the production costs due to decreasing revenues, this is what those subsides cover, so the factory can stay open even if running deficit.

So in summary even if you think you are subsiding every factory, you are in reality subsiding only those which run in deficit. Event still as i said earlier after mid game you will be swimming in money anyways, so it doesn't really hurt your nation if you subside few factories

[Tanetsu]

Also if you think you can't handle those subsides without tanking you income, just increase tariffs. It may increase you militancy, but only slightly since your POPs have to pay more for imported goods

[A Salty Weeaboo]

Originally posted by Random:

Also if you think you can't handle those subsides without tanking you income, just increase tariffs. It may increase you militancy, but only slightly since your POPs have to pay more for imported goods

I would actually say that tariffs can be more harmful than good by late game, especially since they hurt purchasing power of pops which means less taxes.

[Tanetsu]

Originally posted by Alexander Alexandrov:

Originally posted by Random:

Also if you think you can't handle those subsides without tanking you income, just increase tariffs. It may increase you militancy, but only slightly since your POPs have to pay more for imported goods

I would actually say that tariffs can be more harmful than good by late game, especially since they hurt purchasing power of pops which means less taxes.

That's when you lower your taxation, if you can afford it. SInce your POPs will always buy domestic products first and this will mean more domestic demand for goods which means better prices and better income for industry, also tariffs are good way to try getting rid of artisans who are way less effective in mid-late game.

I usually run tariffs on 25-80% depending on situation to cover state losses and to make several thousands at the same time.

And tariffs don't apply on sphere and puppet markets since they count as local market, you will get their products at the same price as you would get your own. Also by being on lower on country ranking has it's effect on your POPs purchases, since world market works on ranking based, first nation on the ranking gets it's goods first and so on. So lower you are less goods you get thus less goods for your POPs to purchase meaning less their needs are fulfilled.

But hey, that's just my way to play the game. Your way is equally good and sometimes better if it suits your style and ways to play. :D

[cpyorch]

Thanks you all for the quick response! I totally get factories more thx.
About Laissez Faire, does it gives any special advantages that Interventionism doesnt? I almost never use LZF but Im clearly bad at industry in this game. Just played a horrible game with spain, where i was unable to build profitable industry at all, my few factories were empty and my economy crashed for no reason midgame. I had managed to raise my literacy to 45% tho, I had most industrial techs and it was about 1870. And i had sphered most of latin america + Korea and Manchuria. What did I do wrong?

[SwagDemon88]

Originally posted by cpyorch:

Thanks you all for the quick response! I totally get factories more thx.
About Laissez Faire, does it gives any special advantages that Interventionism doesnt? I almost never use LZF but Im clearly bad at industry in this game. Just played a horrible game with spain, where i was unable to build profitable industry at all, my few factories were empty and my economy crashed for no reason midgame. I had managed to raise my literacy to 45% tho, I had most industrial techs and it was about 1870. And i had sphered most of latin america + Korea and Manchuria. What did I do wrong?

"Does LF give special advantages that interventionism doesn't?"

Capitalists get a bigger share from factories than interventionism and if you're a country with a huge industry, LF insures that you have the most profitable factories.

"I had sphered most of Latin America + Korea and Manchuria"

If your sphere is bigger than your economy then it can actually hurt for you to sphere someone for reasons. It's better to straight up annex Korea and Manchuria if you can because then you not only get their goods but you also get the money from selling it and the taxes the people working the goods give.

[A Salty Weeaboo]

Laissez faire means you have no control of the economy aside from the budget and taxes, and even those can be limited, it also means that capitalists are on their own when it comes to factories. While that sounds bad, usually by mid to late game many sucessful factories will be built and expanded by capitalist money and not governments, which means that you can earn a lot of money. Interventionism is similar, but you can subsidize factories, which is usually bad by the end of the game if you're not good at building factories, mainly because it can cost you a lot of money. However, you do not have to subsidize them, but you do have to turn it off, because subsidization is automatic, and turning it off late game can be a pain