I'll be fully honest, this might be me just being incredibly dumb but how precisely are you supposed to use higher producers?
If I put them next to the T1 converter (the only once I have access to) it won't produce and says I need more storage. If I put storage between the producer and the converter then the storage item gets made. It I put storage around the producer or converter then it just tells me i need more storage.
Clearly there is an intended way for this to work but it is not explained very well I find.