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The storage capacity upgrade only really helps camps. If a woodcutter's camp fills up with 8 wood and 2 fiber, a woodcutter will need to make a trip to the warehouse to deliver the 2 fiber. Increasing the capacity by 10 could mean they deliver 4 fiber in 1 trip rather than in 2 separate trips.
Production buildings don't usually benefit from increased storage because the workers need to walk to the warehouse to gather ingredients.
In fact, it is often more efficient to set a lower storage limit in production buildings than the max, which you can do with a white triangular slider in buildings' storage UI. In general, you should use that to try to make delivering products line up with when villagers need to gather ingredients. That way, they will walk to the warehouse to deliver and return with ingredients instead of having to walk there twice.