The Capital construction project has been running for 163.5 days and so far has generated 18.06 B profit with a hull moving every 2.48 days on average.
April and November are excluded from the average calculation as November was our start-up month and the books for April are still open. The average number of hulls we have been moving has been rather steady, coming in at 13.25/month.
As expected the Thanatos and Archon are more popular followed by the Chimera. I wish I could package tears for our brave Nidhoggur pilots, as it is the worst racial Carrier.
We started Dreadnought production in January-February so I’m not surprised that their movement has been low. Given the impending changes to the Naglfar, that BPO has been put into production and will hopefully become a strong source of income #nag2013.
In Winter of 2012, I approached my partner Raath to see if expanding our operation into Heavy Industry was a viable means to take excess liquid capital and start to produce return for our efforts. After scouting markets, running numbers, and placing production characters in proper locations the operation formed.
We’ve reached a state of industrial nirvana as our operational inefficiencies have been reduced and logistic kinks have been worked out over the past few months. Given that we’ve nailed down a solid production cycle, we know what we are going to be spending in minerals every few weeks.
A large portion of capital went into the start of our Heavy Industry branch as seen by the grand change in expenses between November and December.
Two periods of expansion can be seen in December and February’s relatively small growth numbers as during these months we poured more capital into Carrier and Dreadnought BPOs, reducing final growth numbers. Also in February a large amount of minerals were purchased for another production cycle that extends into March. Since we operate on a two week cycle, materials purchased at the end of the month show up on the books in the next month.
Historical profits clearly show when the operation started to run.
In January and February we acquired three researched Dreadnought blueprints, two with perfect ME research. Our production lines have expanded to include these ship hulls and in March we should start seeing profits from these jobs.
*rabble rabble rabble*
*throws fuel into the fire*
*rabble rabble rabble*
Having the Tech 2 variant of the BPO means I run a serial production operation (1 BPO) at high margin with a lack of ability to change items in reaction to market changes.
The Tech 1 invention process is a parallel operation (1 or more BPOs) involving lower margins that can over saturate a Tech 2 producer. Inventors do need to maintain of a POS for ME/PE/Copy slots, but the ability to change items in response to market shifts is highly beneficial for Inventors.
Here is a quick rundown of the performance of my Tech 2 BPO vs inventing from one copy of the Tech 1 BPO.
If it was such a poor investment, then why get one? For me the lack of clicks in the invention process and the removal of the wretched POS in the production equation is worth the cost. I have stayed away from large-scale invention specifically due to these two reasons.
No major expansion desires are on the plate at the moment. Right now we are in a ‘slow and steady wins the race’ mode.
The fruits of our trading operation have seen the growth of a Heavy Industry branch of our operation. The initial ISK outlay to start the operation was high, but our market research proved the venture to be viable.
We have been running for around 25 days and we have sold 22 hulls. So far we have been very pleased with the results and velocity of sales. As expected the Nidhoggur has a smaller margin and velocity when compared to the other racial types.
We have reached a point where we can keep all 7 Carrier BPOs in production. Our mineral sourcing, compression, and transport operation has been moving materials along with ease.
An industry goal for 2013 is to expand into Dreadnought production. We have purchased the Capital Component and Weapon Blueprints. Once they reach acceptable ME/PE levels, we’ll start to produce Dreadnoughts.
Another year of growth and transitions into larger projects.
Module, gun, ship construction and trading proceeded as it did the previous year. With reliable income from trading, we expanded our operation into heavy construction by adding a Carrier construction wing to our operation.
From these numbers we can see that our operation is facing more competition as margins were slightly lower than the previous year. To overcome this, we migrated our inventory to higher per-sale profit items. The drastic change in quantity can be explained by dropping Ammo as a common trade item.
This overview shows the benefits of spreading your trade load between high ticket, low volume items and more volume centered low price items.
Q1 and Q2 saw renewed vigor into trading as I started to invest more time into logistics and product research.
Q3, July especially, was a record breaking time as I took any liquidity and moved it back into assets. This also marked our shift into high ticket items. Additionally, at this point in the year my trading partner and I had a lot of time to devote to our operation.
September into October is a busy time for me personally. I took a long vacation October and was away from Eve for a few weeks. Everyone needs a break and our performance numbers directly show this.
Procurer speculation with the Inferno Patch.
Outsourcing some Highsec logistics with Red Frog Freight during busy periods.
Expanded trading into High Meta items.
Expanded construction and sales into Carrier hulls.
Invested 133 days of training into Racial Cruiser Construction V and Jury Rigging V to enable Tech 3 hull and subsystem production in the coming year.
Though there are profits in invention, I found the process of gathering materials, inventing a BPC, putting the component parts together to be uninspired; I had no real focus this year with invention. Most of the time I spent in this area was spent making Drones and increasing my stock of -1/-1 Anshar prints for a rainy day.
My two invention characters have 4-4-4 skills. I have found the training return of getting 5-4-4 or even 5-5-5 skills to marginally increase profits. Since the train time to get a Science skill to 5 is around 20 days, I have not felt the need to sink time into polishing off the skills.
I did keep a database record in order to produced the below summary of my invention statistics The overall success average came out to be 48.2%, which falls in line with any invention guide.
With the addition of Faction, Deadspace, and Officer modules to the market, I saw several trading opportunities throughout the year to work with these items. I had little to no interest in using the tedious contract system to trade these items so when they were added to the general market, I rejoiced.
Here is a summary of the performance of items by Meta levels. Faction and Deadspace items traded well and brought consistent high profits.
Escalation Barge Teiricide
With the changes to mining barges in the Escalation patch, my partner and I mainly targeted the Procurer hull as its build requirements changed the most with the patch. We speculated that the new barges would cost more post-patch so we build a large stock before patch day.
We ended up selling 288 units for a profit of 2.48 B. We put a smaller amount of effort into Retriever hulls and managed to build and sell 44 for a profit of 431 M.
Fear the Sabre
I had limited success with trading other racial Interdictors. The Sabre is the champion of them all and hopefully we see some further balancing to these hulls in upcoming patches.
Alpha Maelstrom to Rail Rokh
This year we saw the popularity of the Alpha Maelstrom as a viable Nullsec fleet composition fade away in favor of the Rail Rokh. I was slow to react to this change and by the time I got my Rohk BPO researched to an acceptable level, the switch to the new doctrine was already underway.
Rigs and Guns
The core rig types (Trimark, CCC, and Field Extender) continued to be a solid performer. If you sell a ship in an area, you should also sell related rigs to popular fits. Let this be a lesson in item cross-selling for anyone building, stocking, and selling ship hulls.
The core gun types seen below also provided some income over the year.
GoonSwarm Shrugged, I Smiled
During the GoonSwarm Ice Interdiction, I speculated on POS fuel and turned a profit. I made 648 M doing some passive trading in Jita on Oxygen Isotopes. In addition, people started to panic and predict that other Isotopes were going to be affected also. I made some early buys on Nitrogen and then sold them off at the height of their price level.
I have focused on and found a number of High Meta items that have proven to be very profitable. I’ve blanked out the names of them because I don’t yet want to disclose the item types at this point in time.
As expected implants were a high performer.
High volume modules provide a small source of income as working with these items means you are in a competitive and often saturated market.
The new Drone Damage Amplifier modules sold very well, but I had poor success with the Reactive Armor Hardener.
I have continued to have limited success with ammo. I have found the velocity of trading to be very slow which I think is due to the nature of ammo production and consumption.
Since ammo jobs are batch based (meaning that when someone runs a production job they are producing a large bath of ammo rather than a single unit), production has periods of high volume. Additionally when someone buys ammo, that person tends to buy a large stock and slowly work though the pile.
I keep stocking ammo with the intention that it will move, but I always am unimpressed by the numbers.
Tier 3 Battlecruisers
The popularity of the Tier 3 BCs remains high as I was able to make a profit on every racial type of them. Surprisingly the Oracle and Talos have been outselling the Tornado.
The Cerberus has remained a poor performer with no production or trading opportunities arsing this year. The Ishtar remains a strong seller as a preferred AFK mission ship while the Vagabond holds up the PVP end of the HAC spectrum. I fully agree with Kirith Kodachi’s recent comments on the upcoming rebalance initiative that will eventually hit HACs.
Tech 2 Logistics Falling From Grace
With the recent rebalance of Tech 1 logistics, I expect my production and trade of Tech 2 logistics ships to decline. As Jester pointed out, the proficiency of the Tech 1 variant can cheaply replicate the Tech 2 variant.
Champion CREST API changes and development with the community to enable 3rd party tools to flourish.
Pressure the CSM for industry and mining changes.
Though the Carrier project is new, it is proving to be profitable so we expect the expand the operation. We are going to look into Dreadnought production in addition to carriers.
Build from stockpile of Tech 3 hulls and subsystem BPCs.
Build backlog of invented Anashar BPCs.
My trading and industry focus tends to ebb and flow over time. Station trading, ship building, reactions, tech2/tech3 construction, and other types — one venture may not be the most appropriate path to success at the given time. Focus on daily ‘0.01 ISK’ trading has fallen off as we’ve moved our focus to Carrier production.
Our mineral compression location has been fully stocked with compression appropriate blueprints, logistic supply lines to our production system have been sorted out, and the initial ISK investment in Capital blueprints has taken place.
Sales from our first Carrier batch have proven profitable, so my partner and I are pleased with the initial results.
Current industry jobs contain guns for mineral compression, Carrier hulls, and getting more ME/PE work done on idle ship blueprints and Capital related blueprints.
My two industrial characters are polishing off Advanced Laboratory Operation and Advanced Mass Production to V, which is around a 27 day train each, to maximize their production abilities.
In an attempt to sell off the stockpile of blueprints that I acquired from price speculation in the Inferno expansion, I have started to become more aggressive with their pricing.
Profits per blueprint have come down into the 250-350 M range. Though they are now worth much more when sourced from NPC suppliers, the market is glutted with people that made the same move as me. My preference is to sell off the stock of 20 prints that I have and to move the ISK into minerals or Capital prints.
I’m seeing a slow, profitable burn the past few months despite spending money on a Capital Ships and Racial Carrier skillbook in addition to a PLEX for a friend to keep his account active.
We’re still turning a profit and I expect the pace to accelerate as our Capital ship production line grows into a full-fledged, efficient operation.
I did not make any moves on the market for Retribution as I did not see any major profit potentials with this patch. The scan changes to Blockade Runners did drive prices up, but I was online far too late to purchase stock.
I did have a plan to place a Jump Freighter in one of the NPC ORE stations that sell blueprints and buy as many BPOs of the new frigate as possible, but the move of liquid ISK into capital prints took precedence.
The rush to build the new Destroyer hulls also did not interest me as I expect their profit potential to rapidly vanish over the next two weeks.
The Carrier building venture has turned out to be quite profitable for the first run of 1x each of the racial Carriers.
Material Purchases 4,300,785,192.70
Manufacturing Costs 948,074.70
Runs 5-8 are currently being built.
Parts for runs 9-12 are nearly ready.
I’m going to have to get another set of racial Carrier BPOs to help feed production lines as we are currently idle while we wait for the Carrier BPOs to come out of manufacturing.
Carriers use a lot of Drone bays, especially the mighty Thanatos. This large requirement leads to a bottleneck in production so I wanted to know the optimal number of Drone Bay blueprints needed to remove this problem.
Using a ME2 Thanatos BPO, I found the optimal ratio of blueprints needed to complete the construction of Capital parts needed for one carrier in around 5.9 days.
Having 6 Carrier Drone blueprints removes the Drone Bay bottleneck and pushes that problem onto 3 other components. I started to adjust the other components to shift the bottleneck around, but it just seems to increase the same radio of problematic blueprints. From my work it seems that the 1:6 Drone ratio is the simplest ratio.