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Victoria 3 - Dev Diary #5 - Production Methods

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Hello again and happy Thursday! Today we will be taking a deeper look inside Buildings to explore Production Methods. These determine the functions of the building, its inputs and outputs, and what employee types it requires to operate.

Many management games let you upgrade a building to increase its efficiency or expand its functionality. In these games, after the upgrade investment has been paid the impact is permanent and nearly always superior in every way to the building's previous functionality. But in Victoria 3 there are no actions without reactions, and novel innovations don't just make buildings better with no side effects. Improving industrial processes over time is to be expected, but in some cases those improvements might require goods as input that the country has scant access to, while others permit the output of a new type of end product at the expense of the old one. As a result, buildings in Victoria 3 require more flexible upgrade paths than what's afforded by permanent, linear, “no-brainer” improvements.

All buildings have several categories of Production Methods, usually between 2 and 5. Only one is active at any given time in each category. Most categories fall into one of these types:

Base: governs the general "tech level" and efficiency of the building, produces goods typical for the building type
Refining: reduces output of typical goods in favor of output of specialized or luxury goods, sometimes adding a special input
Automation: adds industrial goods as input to reduce the building's unskilled workforce requirement
Ownership: determines who owns shares in the building; typically governed by Laws

With the right technologies Food Industries can make Groceries from both Grain (Bakeries) and Fish (Canneries). They can also refine Grain and Sugar into Liquor (Distilleries). With advanced technologies Food Industries can be partially automated, drastically reducing the need for unskilled labor. Simple Food Industries are operated by Merchant Guilds (Shopkeepers), while more advanced and profitable Food Industries are owned by Capitalists who reinvest some of their dividends.

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As one example, an Iron Mine's base Production Method determines if miners use only picks and shovels or if they also use some sort of engine-driven pumping mechanism. There are several different pumping technologies which also determine what fuel is used. The more advanced the pumping mechanism the more deposits can be accessed and the faster Iron can be mined, but the more Coal or Oil is used in the process. With higher tech pumps comes a requirement for more Engineers and Machinists to be on-site to control and oversee its operation. This creates more demand for qualified workers and also opens up a number of better paid positions to those Pops who meet the qualifications.

The revolution in chemical sciences of the era also enabled the use of explosives in mining, which is a secondary Production Method category used only in mines. Once Nitroglycerin is invented, it can be used in mines to generate even more minerals, at the expense of Explosives produced by the Chemical Industry but also with a higher rate of workplace accidents. By researching less volatile Dynamite, even more minerals are extracted at the expense of even more Explosives, with the additional benefit that far fewer workers will blow themselves up on the job.

Once invented, portable Steam Donkey engines can be deployed at mining sites to drastically reduce the amount of manual labor required just for hauling. This costs the building some money in the form of Coal and Engines, but reduces the amount of money they have to pay in wages. Perhaps more importantly it frees those Laborers up to do other work in other buildings if the state is running low on workers. But if wages are already very depressed it might not be a great idea to purchase expensive industrial goods just to increase the unqualified labor pool further, so this might not be a no-brainer decision for a player to make.

In most countries, simple mines are owned and operated by Merchant Guilds at game start. These are small-time purveyors of the goods produced represented by Shopkeepers. Once mines start to industrialize, Capitalists step in to take over ownership. In most cases these Capitalists will come from Shopkeepers promoted to these newly created positions, but some might come from other Pops in the state, even other Capitalists in buildings not quite as lucrative as these new mines. There are fewer Capitalists than Shopkeepers but they draw a higher wage, and more importantly they will reinvest some of their earnings into the country's expanding industry depending on how much profit their workplace is generating for them. As new ideas spread across your society you might be able to make the mining industry publicly traded instead of privately held, and later on in the game perhaps even nationalize them to be run by government bureaucrats or turn them into cooperatives where profit is split between workers.

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Production Methods aren't limited to consuming and producing goods. Government Administrations employ Bureaucrats and Clerks who use Paper to produce Bureaucracy, one of the game's Capacities that let you govern more people and extend more state services to them. Railways consume Engines and a fuel such as Coal to produce both Transportation and Infrastructure, the former which is sold on the market and the latter which allows the state to support more buildings without loss of Market Access. Universities employ Academics that let the state guide research and development of new technologies and ideas. Virtually any kind of currency, modifier, or effect can be produced by Production Methods in buildings and can be applied in a variety of ways to the country, state, or even the building itself.

A basic Government Administration consumes 10 Paper and produces 50 Bureaucracy per fully-staffed level, but each additional level beyond the first adds a +2% Throughput bonus due to economy of scale. This increases both consumption of Paper and output of Bureaucracy, yielding more productivity from each of the Pops that work the building.

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This of course adds a tremendous capacity for modding in new Buildings and Production Methods! Embassies that increase your Influence, but which can also be configured to consume Wine and Meat at state expense to increase the speed at which you Improve Relations? Shantytown Temples that can only be built on coastlines, that consume Fish and create jobs for pops qualifying for the Deep Ones profession, increasing state mortality but also the weekly rate of the global cthulhu_rising counter? We can't wait to see what madness you unleash!

If tweaking multiple Production Methods across several categories on every single building in the game sounds a bit complex compared to linear building upgrades - you're right! Thankfully we've built a number of tools to help with this process. Foremost among these are the Buildings panel, where you can get an overview of all buildings in your country organized by major and minor type. For example you could get an overview of all Rural buildings, or all Furniture Manufactories, or all Ports. If you have buildings of the same type in several different states, you can break it down further to view the individual building. On each level you can see how profitable the building is and adjust its Production Methods. You can even set all Production Methods for a certain building type to a specific setting all across your country with one click.

From the Buildings panel you can get a birds-eye view of all industries in your country and see at a glance how they’re doing financially. You can change Production Methods on an individual building or on all of them at once. You can even expand buildings directly from this screen if you so choose, or click on one to get an in-depth view of its balance sheet and workforce.

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To minimize the requirement for mental math we have also created prediction tools that give you a breakdown of what to expect from choosing a certain Production Method, based on profitability predictions taking adjusted production and consumption into account, and summarizing which new job positions will be created and which will disappear. While it may on the surface seem obvious to just enable the Production Methods that make the buildings more profitable, keep in mind the societal effects as well - are there enough Pops in the state that qualify for the more advanced jobs this new process requires? Will the wage for these new jobs be sufficient to entice those Pops to switch professions? Will you inadvertently create a whole new class of well-to-do Machinists that may have pro-labor union sentiments? Or will the increased profits not lead to higher wages in the building because they're already competitive and fully employed, and will simply result in more dividends for the shareholders which will be funneled into increased luxury consumption? Which you choose might depend on your population’s social mobility, what politics you favor in your country (a socialist uprising may not be in your plans!) and whether you're able to supply luxuries yourself without benefiting your rival. More profitable domestic industries are never bad, but should be far from the only consideration when building your society.

Predictive tooltips will explain the anticipated impact on the building’s Balance as a result of changes in production, consumption, and wage requirements, as well as the changes in employment that could also impact the country’s politics over time. You will also be forewarned if there aren’t enough qualifying Pops to take on any new professions created, as this could limit your industry’s effectiveness.

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That is all for this week. We will return to discussing more economic intricacies later, but for the next little while we'll be exploring domestic politics - starting next week when Martin will be presenting Interest Groups!
 
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Technically, a capitalist is defined by its relationship to the means of production, it's weird to imagine a capitalist work alongside to other worker, qualified or not. They admin or just possess.
They will change Profession in the process, to be clear.
 
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How micromanageable are these production methods?

For instance, if my country has 10 levels of food industries in total and I note that my pops demand a quantity of liquor equal to the output of 4 levels worth of food industries where the relevant production method is active. Could I then always activate the production method in only 4 buildings, even if all of them were condensed to a single state, or would it only be possible if I had spread them across multiple states?

I'd like it to be possible to micro even within states because playing minor nations such as Finland, Switzerland and Wallachia were my favourites in Vic2, and they just do not have the quantity of states to allow such granularity otherwise.
 
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The screenshot that appears to be showing a list of all the urban textile mills in the US looks interesting. Two of them seem to have a spool-of-thread icon as their production method. I’m not sure what the first icon for Louisiana is depicting. It doesn’t look like what I’d guess from context, a sewing machine of the time period (either fixed-arm or pedal-powered), so maybe it’s a loom? But the second icon looks like a dress form, so it seems to be making clothes, not swathes of fabric? The other icons all look intuitive (lathe, glass-blower, etc.), which I hope isn’t misleading, but that one perplexes me. I realize it’s an early preview and the art will change.
 
The screenshot that appears to be showing a list of all the urban textile mills in the US looks interesting. Two of them seem to have a spool of thread icon as their production method. I’m not sure what the first icon for Louisiana is depicting. It doesn’t look like what I’d guess from context, a sewing machine of the time period (either fixed-arm or pedal-powered), so maybe it’s a loom?
It looks like a chemical dying process to me.
 
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will localized conditions effect output of buildings ? (for example the copper mountain in sweden producing either more or higher quality copper than say other mines) and will buildings that operate for long periods of time get higher efficiency due to experience ?
 
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Very interesting and innovative system.
Some questions though:
1. Do I understand correctly that the Player sets the production methods even if the factory is not owned by the government?
Just looking from the screenshots it seems pretty clear to me that the player has control over the production methods of every single type of production building regardless of ownership. If they didn't I'd imagine they would be grayed out or there would be some other way of differentiating what the player has control over and what they don't.

It wouldn't make sense to have a system like this and then only let players have control over it if the ownership Production Method is set to Government Run. At that point there would be no reason to create such a system in the first place.
 
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Will experience and longevity for a business be a factor for production methods? For example, a massive, decades old company would have a different response to industrialization than the small company that started last year. Maybe experience or longevity could be a small penalty or bonus to certain buildings?
 
I haven't been able to read a lot of the replies here, so I don't know if it was answered, but would it be possible for me to, say, keep the ownership at merchant guild level while improving the tools, methods and other improvements to generate greater profit and still be relatively competitive?
 
I'm unsure if this entirely answers your question but you can set up any pop type working in a building to get a share of the profits, and who gets a share and how much is set by the production methods.
As a catchall answer to the questions about private ownership vs publicly traded, how this works isn't something we're ready to answer at this stage.

I’m content to wait until you can answer this in more detail, though when you cover it, I’d love to know if there can be hybrids, such as publicly traded worker co-ops, basically simulating a company with a strong Employee Stock Ownership Program.

Also, please say that in more laissez faire governments, we’re not making the call on upgrading our factories. I’m already very down on the idea of building them in the first place, but upgrading? Ugh. Leave that to the capitalists! If I wanted to actively manage my economy, I’d play as a communist.
 
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I haven't been able to read a lot of the replies here, so I don't know if it was answered, but would it be possible for me to, say, keep the ownership at merchant guild level while improving the tools, methods and other improvements to generate greater profit and still be relatively competitive?
If you wanted to keep the merchant guilds in charge, the only real way to improve your productivity would either be to maintain artificial scarcity of the produced goods or focus on acquiring vast amounts of raw resources to ensure they have super-cheap inputs, with the latter probably being the more realistic option. So basically, you could have a huge section of your population making handcrafted clothes from cheap cotton and that would probably be reasonably profitable and employ a lot of moderately prosperous middle-class shopkeepers, but in terms of goods production per head it'd lag behind more industrialized countries.
 
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Does Ownership affect productivity?
Do worker owned Businesses require to hire Bureaucrats/capitalists/shopkeepers as workers as management?
Can workers buy stocks of public traded companies?
 
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Super exciting stuff!

So to help me understand this conceptually, using the example of food industries in the first picture:

The rightmost two are automation and ownership, and at the moment the player has no choice in either of those (currently locked at no automation and I'm guessing guild ownership).

The leftmost two are "base" production methods for producing "grocery" goods from grain and fish. Of each, the player has available two production methods, with presumably different "recipes" unlocked by tech that improve over tech level. Over time the player will presumably gradually want to change those to the later methods.

The middle one is a "refining" production method, of which the player has two available, presumably one of which is "make no booze" and one of which is "make a bit of booze".

The profile of methods that the player selects from these five categories will apply across all food industries in the state (currently two).

Do I have all of this correct?
 
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If you wanted to keep the merchant guilds in charge, the only real way to improve your productivity would either be to maintain artificial scarcity of the produced goods or focus on acquiring vast amounts of raw resources to ensure they have super-cheap inputs, with the latter probably being the more realistic option. So basically, you could have a huge section of your population making handcrafted clothes from cheap cotton and that would probably be reasonably profitable and employ a lot of moderately prosperous middle-class shopkeepers, but in terms of goods production per head it'd lag behind more industrialized countries.
Could you let them stay inefficient, but subsidize them? And will they vote for you to do exactly that?
 
Follow-up question: it seems from a reply you just sent to another question that ownership will actually automatically change from merchant guilds to private ownership once the industry improves its methods. Could you elaborate on the conditions that cause that switch? (And please correct me if that assessment of the reply is wrong)
 
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