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An intermediate producer will be much more likely to level up when the final producer has done so eg 100 planks are required by a tools factory at level 1 but 200 at level 2 , so it will call more planks forward when it is at level 2.
Cities increase demand as they grow so increasing the population multipliers is the key ,they will also grow a bit over time up to about the year 2000.
Beyond that leveling up is a "pull"; not "push" process?
Thanks.
https://www.transportfever2.com/wiki/doku.php?id=start
For example information about the industries and their levelling up can be found in:-
https://www.transportfever2.com/wiki/doku.php?id=gamemanual:industriescargos