Upgrade the Backpack First
It is recommended that the first thing you upgrade in Terminator: Resistance is the backpack, so you are able to collect more materials and resources in order to craft more things that will help you in the game.
Crafting can only be done at a crafting table, which can only be found in the safe houses that are scattered throughout the game. Keep in mind that this game has a skill tree so leveling up the different science, stealth, and combat skills will unlock different crafting options as the game progresses.
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