Production is, together with taxation and trade, one of the three primary sources of income in Europa Universalis IV. It represents the amount of income generated by local trade good producers and is, unlike in EU3, added directly to the country's monthly income. In contrast to trade income, it is not subject to the competition with other nations via merchants or light ships, but based in your provinces. Like taxation, it is therefore a natural source of income for large sprawling empires, in particular those who lack the strategic location and/or ideas (naval, diplomatic) to effectively compete in the open trade market (such as land-locked nations). Larger nations will benefit greatly from having at least one production increasing modifier.
A nation's production income is the sum of the production income of all its provinces. Territorial provinces will usually generate less production income due to the higher local autonomy floor. The values shown in the provincial economic detail box are monthly values (yearly values are shown in the extended tool-tip). Production income can be further broken down into the below 4 key factors.
- Main article: Trade goods#Goods produced
- See also: Development
Goods produced represents the amount of goods the province can produce and is greatly affected by occupying hostile forces and war-exhaustion.
The value can be increased by constructing manufactories or by development of the province's base production value (an increase of +0.20 local goods produced per production point).
- Main article: Trade goods#Trade value
Trade value represents the total value of the goods transferred to local trade node from the province. It is largely determined by the local goods, amount of local goods produced and triggered event price modifiers.
Production efficiency is a key factor to describe how efficiently a given province or a whole country can produce goods. The global production efficiency slowly increases over the course of the game with the increase of Administrative technology modeling the arrival of new and more efficient production methods over the course of centuries. In addition, the player may encounter various events, decisions, triggered modifiers, and mission rewards during their campaign that may affect either local or global production efficiency.
Note: The base value is not mentioned in the expanded province tooltip and has to be added to the value mentioned (i.e., 80% production efficiency is calculated as 180%).
Production efficiency has a base value 100% and is further modified by the following:
|+20%||Administrative tech: Ahead of time|
|+5%||Parliament issue: Conduct nationwide land survey|
Consider the province Ghent (as seen on the right) with its Cloth trade good (with New Draperies price modifier), owned by Flanders. The nation has constructed a manufactory and a production building as well as invested in Administrative technology and Economic idea group increasing its production efficiency. The province has some local autonomy and war exhaustion.
Note: The displayed values only show 2 digits after the decimal, but include 3 digits after the decimal when performing any calculations.
- See also: Buildings
Prioritize constructing production buildings in the order prescribed below:
- Provinces with high value trade goods, i.e.: Silk, Dyes, Ivory, Iron, Cocoa etc.
- Provinces with very high base production value.
- Territorial provinces (and trade companies) which are beneficial to player's trade) with high value trade goods / high base production value.
- Provinces with trade goods which the nation is trying to become a production leader or trading leader (for the given bonus).
Notes: Gold provinces do not benefit from production efficiency and can deplete at any level of production above 1 (the chance is much smaller at lower levels of production). Also, consider that some trade good provinces may be worthy of investments in manufactories and production buildings in the early game due to their timed peak value.
With the current version of EU4, it is now possible to develop in the base game. Increasing production development requires expenditure in Diplomatic power. However, Diplomatic power is considered to be very valuable (compared with, for example Military power) due to its use in the crucial tasks of integrating other nations and reducing war exhaustion. Although investing some production points can yield high monetary return taking all of aforementioned into account, it is best to spend it on development only when there are no other avenues left.