Ruqayyah Snyder
Austria's industrialisation was kickstarted by its unification with Hungary in 1867, which saw the construction of 6000 km of railway lines, connecting major cities and promoting rapid industrialisation around Vienna, Bohemia, and Silesia. The country possessed the prerequisites for industrialisation, including plentiful natural resources, particularly iron ore and salt, and a long mining tradition. The first machine-building factories appeared in the 1840s, and by the 1880s, three-fourths of the railway lines were nationalised. The country's first industrial monument was the chert mine at Mauer-Antonshöhe in the Mauer neighbourhood of the southern Vienna district of Liesing.
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What You'll Learn
Austria's first industrial monument
During the Neolithic era, the inhabitants of Austria sought out and developed raw materials in the central Alpine areas. The country's first agrarian settlements date back to this time, with the first recorded rural settlement located at Brunn am Gebirge in Mödling. In the Linear Pottery culture that followed, circular ditches were constructed.
Austria possessed all the prerequisites for industrialisation, including plentiful natural resources, particularly iron ore and salt, and a long mining tradition. The Celts, for instance, developed underground salt mining to a proto-industrial level long before the Common Era. In the late Middle Ages, tens of thousands of miners were extracting silver and copper ore. However, the mountainous terrain impeded trade and travel, and the nation's elite remained trapped in a feudalistic mindset well into the 19th century. As a result, industrialisation came later to Austria than to many parts of Western Europe.
The construction of the railway system played a crucial role in the country's industrialisation. Starting in the mid-1850s, the Kaiser Ferdinand Northern Railroad provided services from Vienna, and by 1867, when Austria and Hungary united, 6000 km of lines had been built. This promoted rapid industrialisation around Vienna, Bohemia, and Silesia. By the early 20th century, Austria was home to several automotive factories, including Austro-Daimler in Wiener-Neustadt and Gräf & Stift in Vienna.
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The industrial revolution
Austria had all the prerequisites for industrialisation, including plentiful natural resources, particularly iron ore and salt, and a long mining tradition. The Celts, for example, developed underground salt mining to a proto-industrial level long before the Common Era. Tens of thousands of miners were extracting silver and copper ore in the late Middle Ages. However, the mountainous terrain impeded trade and travel, and the nation's elite remained trapped in a feudalistic mindset until the 19th century.
By 1911, the Ericsson company had established a factory for telephones and switchboards in Budapest, and Austrian car production started in 1897. Prior to World War I, the Kingdom of Hungary had four car manufacturer companies. During the war, the Hungarian aircraft industry began to develop, and factories produced fighter planes, bombers, and reconnaissance planes.
By the 1920s, the Austrian government addressed the acute housing shortage through construction projects such as the famous Viennese "Arbeiterhöfe". Today, Austria has a well-developed social market economy and a high standard of living. It is the 12th richest country in the world in terms of GDP per capita, and international tourism is an important part of the national economy.
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The electrical industry
Austria had all the prerequisites for industrialisation, including plentiful natural resources, particularly iron ore and salt, and a long mining tradition. However, the mountainous terrain impeded trade and travel, and the nation's elite remained trapped in a feudalistic mindset until the 19th century. As such, industrialisation came later and more slowly than in many parts of Western Europe.
The first machine-building factories appeared in the 1840s, and technological change accelerated industrialisation and urbanisation. The construction of the railway system played a decisive role in this process, with the Kaiser Ferdinand Northern Railroad providing services from Vienna from the mid-1850s. By the time of the worldwide economic panic of 1873, all the major cities were linked together by 7,600 km of new lines, and rapid industrialisation was occurring around Vienna, Bohemia, and Silesia.
As in Western Europe, an electrical industry emerged, centred on Vienna, and electric and gas transmission infrastructure was built around the country. The food industry, particularly sugar manufacturing from beet, and paper production, boosted by the vast forests of this Alpine country, were also important sectors.
By the early 20th century, Austria-Hungary was a large, heavily rural country with wealth and income levels comparable to France or the USA. However, there were strong regional differences, with relatively little international trade. The per capita rate of industrial growth averaged about 3% between 1818 and 1870, and the GNP per capita grew roughly 1.76% per year from 1870 to 1913. This compared very favourably to that of other European nations such as Britain, France, and Germany.
During this period, Austrian car production started in 1897, and prior to World War I, the Kingdom of Hungary had four car manufacturer companies. The automotive factories in the Kingdom of Hungary manufactured motorcycles, cars, taxicabs, trucks, and buses.
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The food industry
The industrial revolution, which began in Austria after 1800, played a significant role in the development of the food industry. Proto-industrialization, which started around 1750 in the Alpine and Bohemian regions, laid the foundation for this transformation. The textile industry was at the forefront, utilizing mechanization, steam engines, and the factory system. The first machine-building factories emerged in the 1840s, accelerating industrialization and urbanization.
The strong agricultural and food industry of Hungary, which was part of the Austro-Hungarian Empire, became predominant within the Empire. Budapest, in particular, became the world's largest flour-milling centre after the invention of the roller mill in the 1860s. This period also saw the emergence of the food industry in Austria, with sugar manufacturing from beet becoming an important sector.
Today, Austria continues to have a strong food industry with companies like AGRANA leading the way. AGRANA operates starch factories in Austria, including a mill in Aschach that processes corn for various downstream processing industries. The company prioritizes GMO-free corn and has partnerships with upstream suppliers to ensure the quality and sustainability of its products. Additionally, AGRANA's organic refinery in Pischelsdorf processes wheat starch, wheat protein, and bioethanol, producing top-quality foodstuffs, animal feeds, and products for technical industrial sectors with almost zero waste.
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The car industry
The history of the Austrian car industry dates back to the late 19th and early 20th centuries. During this period, several companies emerged as pioneers in the development and production of automobiles in Austria. One notable example is Siegfried Marcus, who, in 1870, invented the "first Marcus car" by installing a liquid-fuelled internal combustion engine on a handcart in Vienna, Austria-Hungary. This was followed by the creation of the first gasoline-driven car, which he built and operated in 1875 or 1888/89, according to various sources.
In the early 20th century, Laurin & Klement, a significant player in the Austrian automobile industry, produced the first two cars in Austria in 1905. The company later expanded by acquiring the Reichenberger automobile factory (RAF) in 1913. Another notable company, Österreichische Fiat-Werke Aktiengesellschaft, was founded in 1907 as a repair shop in Wien-Floridsdorf. They produced a range of vehicles, including passenger cars, trucks, and omnibuses.
The Puch automobile company, founded in 1899 by Johann Puch in Graz, Austria, played a significant role in the Austrian automotive industry. Puch, a subsidiary of Steyr-Daimler-Puch, manufactured automobiles, bicycles, mopeds, and motorcycles. They produced the Puch Voiturette automobile in 1906 and began making sedans for the Habsburgs in 1910. Steyr-Daimler-Puch, one of Austria's largest automobile conglomerates, dates back to the Austro-Hungarian Empire in 1864. They initially produced military equipment, airplanes, and weapons before expanding into automobile manufacturing.
During the early 20th century, several other companies joined the Austrian automobile market, including Austro Fiat, Fross-Büssing, Saurer, and Berna-Perl, who focused on commercial vehicles. Ledl Ges. mbH, founded in 1973, made a name for itself in the industry by producing buggies, with the Siva model achieving the greatest fame. However, they switched to producing car accessories in 1994 due to changes in legislation.
Magna Steyr, formerly known as Steyr-Daimler-Puch and based in Graz, Austria, is a prominent automobile manufacturer. They develop and assemble cars for other companies on a contractual basis and have worked with notable brands such as Volkswagen and Mercedes-Benz. Magna Steyr has also showcased several concept cars, such as the MILA (Magna Innovation Lightweight Auto) brand, at motor shows worldwide.
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Frequently asked questions
The first factories in Austria appeared in the 1840s.
The first factories in Austria were machine-building factories. These factories, along with the construction of railways, promoted rapid industrialization around Vienna, Bohemia, and Silesia.
Working conditions in the first factories in Austria gradually improved over time. By the turn of the century, working hours were capped at 11 hours, and health and accident insurance was introduced. However, the acute housing shortage was not addressed until the 1920s.
The main industries in the first factories in Austria included the electrical industry, the food industry (particularly sugar manufacturing from beet), and paper production. The textile industry was also a major factor in the early phases of industrialization, utilizing mechanization, steam engines, and the factory system.
