Upcoming Economy Changes - An initial UK perspective
Day 3,141, 15:43
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Published in United Kingdom 
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by
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by Huey George
Introduction
"Starting Day 3,145, the resources distribution resulted from last month’s Resource Wars Event will be launched. With it there comes a change in the location of the Companies, meaning that they will no longer longer “travel” with the citizenship of the owner. For this purpose we are introducing the new Holding Companies." - Latest Updates (http://www.erepublik.com/en/main/latest-updates)
What does this mean for the UK?
I'm not too sure as there is a lot of information to take in and the geopolitics of the new world will play a major factor. However in this article I'll attempt to put these changes into a UK Company Owner's perspective. The majority of the information I'll use can be found on the forums via this link https://forum.erepublik.com/index.php?/topic/4780-economy-changes/
Please have a read and join in on the discussion below especially where you need to say "Hang on Huey, I don't think you've read that right"
Once again I've published them in the Daily eWorker as they are not official Ministry of Finance or Government or Congressional guidance just my own views. I'd also advise your read widely in regards to upcoming economy changes and keep a look out for further information from the admins.
As a reminder the UK's set of resource bonuses for the future.
Some of the information provided on the forum;
Holding Companies
Costs
Formula: "Holding Company cost = Number of Holding Companies owned * 25 Gold."
So;
First Holding Company = Free
Second Holding Company = 25 Gold*
Third Holding Company = 50 Gold*
Fourth Holding Company = 75 Gold*
and so on
How many holding companies do I need?
While Holding Companies can hold an unlimited number of Factories. I'd suggest if you are planning on getting the most productivity per industry it'd be ideal to have one holding company per industry alternatively you could use some of the mixed resource regions using this approach you could have all your industries in one holding company. I'll expand further on these options later in this article.
Assigning Factories
The cost for relocating a production facility is based on the value of the Company and the distance between the two Holding Companies. The relocation fee is paid in Currency and varies between 5% to 20% of the Factory face value ergo moving higher quality factories is expensive so take careful consideration before the placement of these...even moving lots of raw material buildings while individually may not be too expensive could be cumulatively expensive.
An example Weapons I've stated in the past I felt the best two option for UK weapon bonuses would be Mayo (Ireland) and La Rioja (Spain), the Moving distance between these two regions is 1,364 Km. So to move a Q7 Weapons factory between a Holding Company located in Mayo to La Rioja would cost using the Monetary Market exchange rate, that value will be converted to Currency (assuming an exchange rate of 400 Currency / Gold). 1230 Gold would translate into £492,000.00 GBP, which would bring the assign costs on the relocation to £24,600.00 GBP. A rubber plantation would cost £700 GBP so moving 20 of them would cost £14,000.00 GBP.
.
A table of some more relocation cost (although the formula is simple enough);
4% company value + 1% of value for each 1000 km travelled, capped at 20% value.
Sorry for the rather small size of the table
Hiring employees
A Holding Company is required in order to post job offers. Once posted, an offer will be available on all the markets (countries) where the Citizen has Holdings. Fairly straightforward although worth noting that if you place no holding companies in the UK that your job offers won't appear in the UK job market although I believe a UK citizen could move to the country of your holding company and take one of your job offers.
Working as Manager
In order to be able to work as manager, you will need to be located in the region where the Factories are located. Although worth noting that when the Country of citizenship of the manager is in direct war with the Country where the Holding is located, the manager cannot work in the factories of that Holding.
Productivity Bonus
The Productivity Bonus for an industry is calculated as such:
Productivity Bonus = Country Productivity Bonus + Region Productivity Bonus + Player Booster - Region Pollution Factor
Pollution Factor is calculated based on the number of goods of the same type that were produced in the region compared to the overall average production for that type of goods. The factor varies between 0 and 25%. The more goods are produced in the region, the higher the pollution will be. Each product type/quality pair will have its own pollution.
All raw Factories will share the same pollution for their respective industry (Example: Fishery, Grain, Farm and all other Food Raw Materials will share the same Pollution Factor).
The Country Productivity Bonus is the sum of distinct industry resources the Country owns.
IE: if a Country holds all 5 resources for an industry and the regions are linked to the capital, the Country Productivity Bonus will be 100%.
Keep in mind that if a region is not linked to the Country capital, half of its resources’ productivity bonuses will be used in the formula (ex: 25% for rare will become 12.5
😵.
The Region Productivity is the sum of the industry specific resources available in the region divided by 5.
IE: if a region holds the best 4 resources for an industry, its productivity bonus will be 18%.
Based on the numbers presented and assuming a Pollution Factor of 25% and no individual Productivity Boosters, the Productivity for a food company will be computed as:
Total Productivity = 100%(base_productivity) + 100%(country_bonus) + 18%(region_bonus) + 0%(individual_booster) - 25%(pollution) = 193% (93% productivity bonus)
For the same example but with no pollution we would 100% + 100% + 18% + 0 - 0 = 218% Total productivity (118% productivity bonus)
The Region Productivity was a surprise to me personally, possibly due to myself not reading widely enough however with a maximum region productivity bonus of 18% versus a pollution maximum of -25% a regional productivity bonus could be easily lost.
The placement of Industry Specific UK Holding Companies
Food
In the UK option
Country Bonus (4/5)
70% Country Productivity Bonus (Fish(+10
😵, Fruits(+15
😵, Cattle(+20
😵, Grain(+25
😵)
Best UK Region for Food Productivity Bonus
Yorkshire and Humberside
70% ((Fish(+10
😵, Fruits(+15
😵, Cattle(+20
😵, Grain(+25
😵)
Food companies in Yorkshire and Humberside while connected to the capital and not occupied with no player boosters.
Total Productivity
100% (Base) + 70% + 14% - pollution (0% to 25
😵= 159% to 184%
Some other options
Germany (100
😵- Mecklenburg-Western Pomerania (18
😵
Moving distance:816 Km (from London)
Current Traveling cost:20 GBP
Spain (90
😵- Murcia (18
😵
Moving distance:1,505 Km (from London)
Current Traveling cost:40 GBP
Croatia (90
😵- South Dalmatia (18
😵
Moving distance:1,527 Km (from London)
Current Traveling cost:40 GBP
USA (100
😵- District of Columbia (18
😵
Moving distance:5,914 Km (from London)
Current Traveling cost:80 GBP
Weapon
In the UK option
Country Bonus (2/5)
25% Country Productivity Bonus (Iron(+10
😵, Aluminum(+15
😵)
Best UK Region for Weapon Productivity Bonus
Scotland
25% (Iron(+10
😵, Aluminum(+15
😵)
Weapon companies in Scotland while connected to the capital and not occupied with no player boosters.
Total Productivity
100% (Base) + 25% + 5% - pollution (0% to 25
😵= 105% to 130%
Some other options
Ireland (70
😵- Mayo (14
😵
Moving distance:673 Km (from London)
Current Travelling cost:20 GBP
Spain (90
😵- La Rioja (18
😵
Moving distance:1,020 Km (from London)
Current Travelling cost:40 GBP
Poland (90
😵- Pomerania (18
😵
Moving distance:1,297 Km (from London)
Current Travelling cost:20 GBP
Portugal (90
😵- Azores (18
😵
Moving distance:2,518 Km (from London)
Current Travelling cost:40 GBP
House
In the UK option
Country Bonus (2/5)
25% Country Productivity Bonus (Sand(+10
😵, Wood(+15
😵)
Best UK Region for House Productivity Bonus
North East of England
(Sand(+10
😵, Wood(+15
😵)
House companies in North East of England while connected to the capital and not occupied with no player boosters.
Total Productivity
100% (Base) + 25% + 5% - pollution (0% to 25
😵= 105% to 130%
Other options
Spain (100
😵- Canary Island (18
😵
Moving distance:2,895 Km (from London)
Georgia (90
😵- Lower Karti (18
😵
Moving distance:3,425 Km (from London)
Current Traveling cost:40 GBP
Canada (90
😵- Nunavut (18
😵
Moving distance:4,077 Km (from London)
Current Traveling cost:40 GBP
USA (100
😵- Florida (18
😵
Moving distance:7,040 Km (from London)
Current Traveling cost:80 GBP
"New" Airplane Industry(0/5)
In the UK option
Any region
Total Productivity
100% (Base) + 0% + 0% - pollution (0% to 25
😵= 75% to 100%
Other options
Spain(70
😵- Asturias (14
😵
Moving distance:1,002 Km (from London)
Current Traveling cost:40 GBP
Romania (60
😵- Transilvania (12
😵
Moving distance:1,800 Km (from London)
Current Traveling cost:20 GBP
Pakistan (90
😵- Balochistan (18
😵
Moving distance:5,897 Km (from London)
Current Traveling cost:60 GBP
USA (70
😵- Utah (14
😵
Moving distance:7,844 Km (from London)
Current Traveling cost:80 GBP
Final Holding Company / Company Placement Thoughts
Personally I would invest in a holding company per industry type you have / plan to have serious investment in. A food holding company in the UK (Yorkshire and Humberside) seems reasonable and an extra +34% (+30% Country Bonus and/or +4% Regional Bonus) doesn't seem worth the potential travel costs and complication direct wars / trading embargo might throw up for Work as Manager.
A weapons holding company in Ireland (Mayo) seems a good option although any direct or training wars with Ireland would cause Work as Manger issues and relocation would be costly however the UK has recently enjoyed a very good relationship with Ireland. So going after a total productivity of between 159% to 184% instead of 105% to 130% maybe worth the geopolitical gamble.
A housing holding company in Spain (Canary Island) seems like reasonable options as again although any direct or training wars with Spain would cause Work as Manger issues and relocation would be costly however the UK has enjoyed a very long and friendly relationship with Spain. In addition I haven't read anywhere that even if under occupation that UK Company Owners wouldn't still enjoy a good Country bonus without Work as Manager affected as Country in the Country bonus is the country which currently owns the region where your holding is placed in so any Nation with the power to take and hold Spanish regions are likely to have a good set of Country bonuses unless they are in direct war or set a trading embargo. So again going after a total productivity of between 193% to 218% instead of 105% to 130% maybe worth the geopolitical gamble.
A "new" airplane holding company also in Spain (Asturias) seem worth a geopolitical gamble as your total total productivity of between 159% to 184% instead of 75% to 100%
The one holding company options;
A relatively stable region in a powerful country with good country bonuses (or can get good bonuses) and not likely to be in direct conflict with the UK or set a trading embargo. Or if you are not too bothered about country or regional bonuses and long for a simpler life a UK region with minimal bonus not likely to be occupied too often (maybe East of England or London) as you are unlikely to be affected by pollution and you'll enjoy the UK's 70% Food, 25% Weapon and 25% Housing bonuses with hopefully limited disturbance as no foreign country would gain significant bonuses to holding these regions long-term.
Close
I'll continue to ponder the upcoming economy changes and by no means are my words above my final definitive decision as I'll read articles written on the subject by other citizens, continue to read the questions and answers on the topic in the forum and hopefully get another look at the world map with the new resources on before I invest in additional Holding Companies on top of the free one or assign my factories/companies. I'm also looking forward to reading comments from other UK citizens to inform my choices. I'll also try to publish another article myself on this topic
Thanks for reading
Author
Huey George
Owner, Press Director and Editor of The Daily eWorker
Founder and Councilor of The Workers' Rights Party
Owner of 462-477 Engineering, Industrial, Manufacturing and Agricultural Concerns
Founding member of the Co-Operative of Equitable Pioneers
Founder and Commander of the Free British Irregulars Military Unit
Member of Congress(Parliament)
Current Minister of Finance / Governor of the United Kingdom
Former Party President of The Workers' Rights Party
Former Speaker of the House
Former Minister of Home Affairs (Minster of Education)
Former Minster of Foreign Affairs
Former Country President/Prime Minister of the United Kingdom
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Comments
Made it to the end and forgot where I started 😃
Any tl;dr I could submit to parliament as a MoF report?
Probably too much of a simplification however;
- You need at least one holding company with your factories assigned to it to produce goods/raw materials.
- It get progressively more expensive to create them ( I don't think they can be dissolved or sold)
- Holding companies are fixed in the region they are created it (Regional bonuses can not change although will be affected (potentially a great deal) by pollution) Country bonuses can change determined by which country holds the region and that Country's current bonuses
- Country Bonuses have a greater impact on productivity compared to Regional Bonuses (very roughly by a magnitude of 5)
- Assigning factories is free for the first time however relocating them between Holding Companies can be very expensive (so realistically for the higher quality factories and your main base of raw material production it could be a one shot chance at getting this right unless you are rich)
- There doesn't seem to be one perfect option as productivity is influenced by many factors
"Probably too much of a simplification" - and breaks the comment box 😃 I always vote article before reading Huey, leaves more space for remembering content.
Hang on Huey, I don't think you've read that right.
Your signature should include "absolute bloody legend"
Today allies, tomorrow enemies...you can never be sure in this game.
Does any of this include the effect of pollution
Some of it;
Pollution will take between 0% to 25% from total productivity, within this article anywhere I've included a range (ie 159% to 184😵 shows the variable effect of pollution. I have not included the effect of pollution (or base productivity) on the "other options" sections.
Hope this clarifies what I've written in my article a little more.
Amazing work Huey. Exactly what we needed. Thanks!
Great article Huey, really helped me out.
So if I own 3 companies in 3 places, I'd have to fly to each place before I work as a manager there?
Yes. Fly to Mayo, work the weapons; fly to Canary, work the house; fly to Asturias, work the planes; fly back to Humberside to work the food.
I think I'm just gonna put my 4 WRM in london. Not sure if its worth flying back and forth.
I'd actually advise you place your Free Holding Company in Scotland and your 4 WRM companies within this Holding Company if you've decided it is not worth flying back and forth. This take advantage of some Scotland's regional weapon bonus as well as the Country bonus both London and Scotland attracts.
Thank you Sir Charles, OldGunFighter has answered your question however I've added some addition advice for you on this comment for you to consider.
Cheers Huey!
Do they really want to make it too complicated for us to play, now?
It seems that way... and to a certain extent it's going to be prohibitively expensive to become an economic strategist by moving production between regions agilely to save costs as the face value of companies plus relocation cost against what you earn selling products on the market means very long ROI on an initial investments remains and now subsequent relocation just adds to the time ROI takes...
So, my long term strategy of being self-sufficient seems to be about to break down - this has implications for the ordinary worker as well.
Looks like it.
Nice work Huey. Lots to ponder.
Thanks WookieO
Personally I think I'll just have one holding company in Y&H or Scotland and save the 25 golds I would need to spend to have enough holding companies to maximise my production, and save the CC I would have to spend traveling around to WAM them all every day, and make sure all my taxes go to eUK (unless we get occupied). Housing is the only thing I'd consider putting somewhere else, seeing as I can't WAM it anyway so wouldn't need to travel there daily.
This makes me feel like admins are trying to make me poorer.
Maybe the gov should consider moving or holding comp loans to support people?
Amazing article Huey but isn't it all oh so complicated and troublesome... aghhhh.. I just want to stiick to my simple work every day normal routine..training and working and fighting for UK I simply don't have the cash or the gold to get involved in any of this..it's already a struggle to amass the gold for the training contract and I make absolutely nothing from my Q1 food and Q2 weapons companies. I only have two so what is the easiest thing to do without spending ANY money? Whatever that is, I will do it.
So now we have seen some of the regions with maximum region bonus now having maximum pollution with only one third of companies having been located - it would appear that placing companies in regions with max bonuses actually reduces production compared with a region that does not have any regional bonuses.
basically every country placed their resources (with the exception of Romania), to maximise the region bonus unaware that its benefit would be less than the detrimental effect of pollution. i.e. why has the region bonus been divided by 5?
v