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Crafting is a system of combining items to create building kits to access new areas on the island and building components used to craft quest items and camp expansions that are unlocked through crew happiness.
Blueprints require wood, which can be gathered from trees on the main island by using the axe, and/or other materials, which can be found in chests. The trees in the northern part of the main island renew when sleeping, so do randomly-chosen chests on the non-main island. Some chests that require a kit to get to might yield crafting products instead of material. Chests located at ladder build sites that act as a shortcut will contain a ladder kit.