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post Crius - the true market impact of industry: Production Times

Author
Annaleva Niminen
Royal Amarr Institute
Amarr Empire
#21 - 2014-08-06 14:06:49 UTC
Jan Po wrote:
Hey Guys,

In following this thread I disagree that these changes have made a negative impact on Industry in the long run.

Right now most people (especially new builders and pilots unknowing of market trends and economics) will begin taking advantage of the new changes to production time without seeing the long term volatility to their actions.

Yes at the moment, I agree some prices have already begun to fall, but the market has yet to right itself. There was / is still an abundance of raw resources available at post patch prices, and so far there has been very few buy / sell order adjustments to mitigate the change in refining / reprocessing which also came with the patch.

This is where some of the big hitters will see a difference, right now and for the next few short weeks to follow, prices will continue to fall, but once the demand for raw resources exceeds the supply of them in market at pre-Crius prices, then we will start to see a market adjustment to increase the actual raw material costs of manufacturing which in turn will not only correct this temporary market fluctuation, but will also help aid a forgotten art... mining.

Mining as far as I've noticed has become increasingly more forgotten (at least by Null Sec pilots) and with these manufacturing changes, I can see mining becoming a more lucrative occupation than it has been in recent years.

Anyways, just my spin on what's happening and how I see the changes coming down the line.

Good Luck!


Hello Jan Po
I totally agree with you that the prices WILL adjust together with the mining aspects -you are crrect there - and also that new players can enjoy that more since the production now results with goods for the market earlier. I think you miss the point though that an increase in production - in case of ammuniton by the factor 7 - without an increase in demand will negativly impact price margins. So where is the need for more production capabilities if there is no increase in demand. Granted, one could simply produce something else and sell that - and following SJ Astralanas argument regarding portfolios below, you will adapt. s/he is correct there - as long as the increase of production capabilities does not span every aspect of production because if every industrialist would produce 7 times the amount of every good they produced before, market will be flooded without the demand and sooner or later there will be no interesting profit at all, regardless of the portfolio you have. Of course this will not happen because doing so means that you spent quite a lot of time now clicking and hauling stuff.
The core question arising here is how strongly the increased production capabilities helps to nurture the demand of goods, does the market support such a strong increase in production capabilities and keeping the profit ranges good enough - yes or no.
If anyone knows which production categories have been affected by this drastic reduction in production times, this could help a little bit for further analysis.
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