They’re an investment, but they’re worth it in the long run. So they accelerate your overall production rate down the line.
Here’s the lowdown: they increase the number of structures you can build at once (and, to some degree, the speed in which you build them). The Hearts of Iron IV tutorial loves to tell you to build civilian factories, even before military factories, but it doesn’t do a great job of explaining what civilian factories actually do. ‘Hearts of Iron 4’ Preorders Open, Game Comes With Free DLC.'Hearts Of Iron 4' Advice: Take The Trouble To Learn The Game.