19th and 20th centuries
19th century
A major breakthrough in Swiss watch production came in the early 1840s when Georges-Auguste Leschot (1800-84), the technical director of the firm of Vacheron Constantin, invented a series of machine tools able to make watch components – something previously thought impossible. The new watches could be produced in much greater numbers and were far more accurate and much cheaper, although Leschot still insisted that every part should be worked on by hand.
Swiss watchmaking went from strength to strength during the 19th century. By the middle of the century they had overtaken the British both in manufacturing and sales and were the world's major producer.
The first serious rivals appeared on the scene in the middle of the 19th century, when American watchmakers started mass production of watch components that were so precise as to be fully interchangeable. The impact was dramatic. Swiss watch exports to the US fell by nearly 75% in the space of about 10 years.
This was a serious blow to the Swiss industry which led them too to embark on the precision machining of parts. In the early 20th century they also started making their watches more attractive by adding extras, such as calendars and a stop watch facility. Rolex made the first water resistant watch in the 1920s.
A recycled bicycle clock© Drahtesel.ch
The 20th century
The major revolution of the 20th century initially passed Switzerland by. Although the first quartz watch was actually developed at the Electronic Horological Centre (Centre Electronique Horloger, CEH) in Neuchâtel in 1967, Swiss companies failed to capitalise on the new technology. They left it to others, in particular in Japan and the US, to improve on the discovery. The Swiss put most of their research and development funds into improving mechanical watches.
It was an error of judgement which almost destroyed the industry in the mid 1970s as the bottom fell out of the market for traditional watches. Switzerland was no longer a major player as far as watches were concerned.
But the Swiss fought back in an unexpected way. They called in a business consultant who introduced a revolution of his own: the watch as fashion statement. The cheap electronic Swatch watch has sold in its millions, and put the country back at the top of the world's exporters in 1995.
The success of the Swatch is credited with turning around the fortunes of the Swiss watch industry as a whole. It boosted confidence in Swiss watch making and showed the Swiss how to sell their products.