Gathering brings in the raw goods. Refining makes the common materials from them, and refining a common one again with an additive makes the uncommon ones. Production takes them from there.
Common cloth, refined from Raw Cotton by Textiles at level 1 (recipe).
One Spool of Cotton Thread takes 2 Raw Cotton and 1 Wax.
Uncommon versions: Spool of Carapacian Thread and Spool of Fustian Thread
Refined further into:
Production takes it, or its forms, in 150 Tailoring, 43 Carpentry, 28 Blacksmithing, and 1 Alchemy recipes.
What it adds to gear parts made from it: