February Financial Report

Overview

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.

Graphs

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.

Dreadnought Blueprints

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.

Industrial Trophy

*rabble rabble rabble*
*throws fuel into the fire*
*rabble rabble rabble*

Have a look at the research I’ve conducted about how just poor of an investment these items can be: Tech 2 BPO Returns and Percentage of Items from Invention vs Tech 2 BPOs.

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.

Future Plans

No major expansion desires are on the plate at the moment. Right now we are in a ‘slow and steady wins the race’ mode.