Why is it cheating?
If a factory can provide income, banking, and food all in one place, players will never need to leave the factory. Nearby store owners will go broke because nobody needs to leave what essentially causes people to go hungry very fast.
It ruins the economy, cyclically provides income and returns for the factory owner (which already has tremendous income), and it keeps people from really doing anything.
Okay, so taking crates from you factory to your lot will make your skyscraper higher. Is that right?
Yes. It's not a difficult concept. You buy upgrades with refined plastic and money.