SDC Weekly 36; Établissage
What is it? Where did it come from? Why is it such a big part of Swiss watchmaking today?
Do you know what Établissage means, what it refers to, or how deep this Swiss watchmaking rabbit hole goes? Have you heard of Daniel JeanRichard? Today, we have a bit of an idiot’s guide to this Swiss term which forms such an integral part of our beloved hobby.
Hello 👋 and welcome back to the SDC Weekly. Please find the older editions of SDC Weekly here.
As I am travelling, I prepared this post on Établissage beforehand, and thought it warranted an entire edition of SDC unto itself. That also means if you hoped to hear about any juicy news or industry shenanigans since last Wednesday, you’re sh*t outta luck. Still, I wouldn’t publish complete nonsense, and I think you’ll enjoy this one.
Let’s dig in.
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🖇Établissage
Since the 17th and 18th centuries, the Swiss watch industry grew in the Jura Mountains using a system called “établissage.” Today, we see something similar to this system, but it’s important to look back and examine its roots.
At the heart of this system was the “établisseur,” a key figure who played a central role between manufacturers and the market, overseeing the entire process. The établisseur was basically a middleman, assigning different tasks to various subcontractors. These subcontractors often further delegated parts of the work to other subcontractors, making the production process intricate and interconnected. What is interesting to note here, is how this is not too dissimilar from what we have today, except it is all often under NDA and end-users are often duped by manufacturers who say something is in-house when in fact, it is not. This is more a marketing issue, but the point is that this practice is not new, and not at all ‘unusual’ for the industry.
The établisseur collected the various components produced externally, such as cases, movements, dials, and hands, then assembled them into finished watches within their own workshop, known as a “comptoir d'horlogerie.” Some établisseurs even delegated the assembly process to watch manufacturers (fabricants d'horlogerie) who then sold the finished watches back to the établisseurs who had better market access which I will elaborate on shortly. Again, to bring it back to modern watch companies, there are only a few remaining brands who do everything themselves. Even F.P. Journe who do most things in their own factory, still procure their watch crystals from outside sources.
Despite the growth of the watch industry in the 19th century, fueled primarily by global expansion, there was no significant change in how the production system worked. The increased demand did not lead to the kind of large-scale industrialisation you might expect. Instead, it led to more specialisation of tasks, and this ended up strengthening the établissage system. As a result, watch production simply became more fragmented, with many small workshops sometimes even set up inside workers’ private homes. The number of operations needed to make a watch doubled from ~50 to ~100 between 1830 and 1870.
The rapid growth of the industry during the 19th century, driven by expanding markets, particularly in the United States, didn’t lead to any meaningful shift in how this production system operated (reasons for which I will get to in subsequent posts). While a general trend towards a larger division of labour emerged in the second half of the 18th century, the increased demand did not result in major industrialisation as you might ordinarily expect; instead, it led to a further specialisation of activities, which ended up reinforcing the établissage system. As a result, the production of watches became increasingly fragmented, with numerous small workshops, sometimes even operating within the various workers’ homes. The estimated number of different operations needed to produce a watch rose from ~50 around the year 1830 to ~100 around 1870.
Leading up to 1870, this extreme specialisation of labour was quite pronounced - essentially every home-worker was focused on a specific (increasingly reduced) part of the production process. In La Chaux-de-Fonds, there were 67 separate occupations in watchmaking by 1870, and within that, there were a total of 1,308 autonomous workshops - primarily small businesses specialising in a limited part of the manufacturing process. The chart below is a breakdown to give you an idea of just how many specialist ‘jobs’ existed - I took the top 75% of the 67 different jobs, and below you will see how many workshops existed doing that particular job. The percentage is represented as a fraction of the 1308 total workshops. So for example, there were 202 finishing and assembly workshops, which constituted 15% of all workshops at the time.
Evidently, the Swiss watch industry was largely characterised by home-based work and small workshops. Around 1870, roughly half of the workers in the sector worked from home, and 80% of those in workshops were part of firms with 10 or fewer employees. Interestingly, those working from home likely didn’t slack off because if they didn’t work, they wouldn’t earn anything! While these workshops did operate somewhat ‘independently’, they were also highly interconnected through business and outsourcing networks, which limited their autonomy to some extent. After all, if you made jewels or did jewel setting, you were entirely dependent on someone buying these jewels or requiring you to set them in watch movements!
As mentioned earlier, the établisseur had another important role in marketing watches. Often using family and business connections, the établisseur, who was primarily a trader, had good access to export markets. A common setup involved one family member overseeing production in Swiss watchmaking hubs like Geneva, La Chaux-de-Fonds, or Le Locle, while other family members settled in various parts of the world, such as Germany, Italy, Great Britain, or the United States, to sell the watches they received from Switzerland. Sometimes, établisseurs teamed up with independent watch traders who helped them reach specific markets. These établisseurs’ families were often linked through marriages, creating a tight-knit nepo-network1. Many came from wealthy trading backgrounds, which was crucial for distributing work to small subcontracting workshops. Some might argue that not much has changed in this aspect, especially among the global elite!
An example of an établisseur: the DuBois family of Le Locle
The Dubois family serves as a prime example of the journey for many établisseurs in Switzerland during the 18th and 19th centuries. They began as cloth traders in the late 17th century, which helped them establish themselves in different European markets.
In the mid-18th century, Moise DuBois expanded the family’s cloth business to include clocks and watches, although watch production itself started a bit later in 1751. Moise’s son, Philippe DuBois, entered the watchmaking sector for the family. In 1785, he and his sons established a trading post, or comptoir, in Le Locle. By then, the family had established extensive business connections across European trading centers. For instance, Philippe’s brothers, Guillaume and Abram, settled in London, while his son Charles opened a trading post in Amsterdam. By around 1810, the DuBois family had established a presence in major European markets, including Germany, Great Britain, Austria, the Kingdom of Naples, Prague, and more.
The descendants of Philippe DuBois, much like today’s global elite, strategically formed marital alliances to strengthen their business. Jules-Henri, Philippe’s son, married Sophie Vuagneux, the daughter of a watch trader who exported to London. In the next generation, power shifted to Jules-Henri’s two sons. Jules, involved in a local royalist movement, relocated to Frankfurt after the 1848 democratic revolution in Neuchâtel, maintaining the family's business connections. The second son, Louis, oversaw production in Switzerland and supplied watches to his brother. Louis’ daughter, Cécile, married Jules Frédéric Jürgensen, from a renowned Danish watchmaking family. This basically carried on throughout the 20th century. Wild.
Why Was Établissage Successful?
The établissage system wasn’t exclusive to watchmaking or Switzerland. Similar production methods existed in different parts of the world during the 17th-19th centuries, especially in the textile industry (known as the verlagssystem). However, by the mid-19th century, the organization of the Swiss watch industry, with its établissage system, contrasted with its main competitor, the United States. In the U.S., watch manufacturing was shifting towards centralised mass production within factories.
Culturally, explanations for the growth of watchmaking in Switzerland within an établissage system often highlight the role of Protestantism and the presence of pre-existing technical knowledge. Protestantism, linked with the spirit of capitalism, is thought to have contributed to a high level of education among the population in the Jura Mountains, making them adept at engaging in semi-industrial activities like watchmaking. The learning of foreign languages, particularly German, is seen as having a significant role in promoting the commercial success of Swiss watches. Additionally, the existence of technical knowledge, particularly in metallurgy and working with steel, passed down through generations, is considered another crucial factor in the success of établissage. Figures like Daniel JeanRichard, regarded as the initiator of watchmaking in the canton of Neuchâtel, symbolise this cultural context.
Donzé argues in his book that the cultural explanation alone doesn’t fully clarify why watchmaking thrived in the Jura Mountains. He points out that the connection between historical metallurgical expertise and a technically-inclined culture wasn't unique to the Jura mountains. More on this in a second; first let’s talk about JeanRichard.
Daniel JeanRichard was born in the 17th century (1672) in the Swiss canton of Neuchâtel and is credited with bringing watchmaking to the region. His birthplace, characterised by poor farming conditions and long winters, led the inhabitants to seek indoor work during cold months. JeanRichard supposedly initiated a revolution which transformed a rural farming community into the global center of watchmaking.
Around 1691, JeanRichard opened a watch workshop near Le Locle, defying guild restrictions. He employed local farmers, providing work during the winter months, to manufacture individual watch components. His approach to the division of labour appears to form the origins of établissage. JeanRichard's approach aimed at increasing specialisation and mechanisation, resulting in high-quality watches being produced at lower costs.
Daniel JeanRichard's workshop in Le Locle eventually became a hub for horological education. He first taught his five sons, and later took in apprentices which created a cycle where young learners became masters and, in turn, trained new artists. Unlike Geneva's watchmakers with restrictions on apprentices, the number of apprentices and new masters grew rapidly in the mountains.
JeanRichard passed away in 1741, and is remembered as a hero in Le Locle and La Chaux-de-Fonds; with a statue of him in Le Locle and a museum in La Sagne dedicated to his legacy. His contributions marked a transformative era in Swiss watchmaking, celebrated to this day.
Ok, back to the explanation regarding the growth of watchmaking in Jura Mountains. As opposed to a cultural argument, Donzé posits an economic explanation for the diffusion of watchmaking in Switzerland through the établissage system is probably more convincing - he highlights three factors which played a role.
Absence of Guilds: Unlike urban centers like Geneva, where guilds controlled access to apprenticeships and labour division, Switzerland lacked guild restrictions in rural areas. This absence allowed watchmaking to flourish in the countryside, where it could be freely established. Traders organised clock and watch production using the établissage system to meet growing demand.
Lack of Capital: Outside major urban centers, such as Geneva or Neuchâtel, there was a shortage of capital necessary for industrialised production. In smaller towns where watchmaking emerged, families often engaged in farming alongside watch production. Despite the potential for individual involvement in watch manufacturing or parts production, there was insufficient capital to establish large-scale industrial operations.
Existence of Commercial Networks: The presence of established commercial networks, including Protestant refugees known as the “Huguenot International,” facilitated trade across Europe and the Americas. Prominent trading families in Geneva and Neuchâtel operated global networks involved in various businesses, including textiles, colonial commodities, and even slave trade! While watches were not their sole focus, they diversified their businesses to include clocks and watches, establishing outlets where watch dealers could set up shop.
Summary
The Swiss watch industry, rooted in the 17th and 18th centuries in the Jura Mountains, witnessed the growth of the établissage system. This system, centered around the établisseur as a crucial intermediary, intricately connected manufacturers and markets, reminiscent of contemporary outsourcing practices.
Notably, the historical établissage system shares similarities with modern practices, but what we face today is more linked to transparency and authenticity within the watch industry. Despite a surge in demand, the Swiss watch industry retained the établissage system, leading to specialisation and fragmentation rather than large-scale industrialisation. This era saw a proliferation of small workshops, some even based in workers’ homes, emphasising the decentralised nature of production.
While cultural explanations, such as the influence of Protestantism and technical knowledge, have been proposed, an economic rationale seems more convincing. Pierre-Yves Donzé argues that the diffusion of watchmaking in Switzerland was primarily driven by the absence of guilds, capital limitations in smaller towns, and the presence of commercial networks.
Integral to this history is Daniel JeanRichard, born in 1672, credited with bringing watchmaking to the Jura Mountains. His workshop near Le Locle defied guild restrictions, emphasising specialisation and mechanisation. JeanRichard’s approach laid the foundation for the établissage system, marking a transformative era in Swiss watchmaking. His legacy is celebrated through monuments and museums in Le Locle and La Chaux-de-Fonds, showcasing his role in the industry’s history.
In essence, the growth of watchmaking in the Jura Mountains was shaped by a complex interplay of cultural, economic, and historical factors, with the établissage system at its core. JeanRichard’s pioneering contributions stand as a testament to the enduring innovation and resilience of the Swiss watch industry over the centuries.
📌 Links of interest
⭐ This patent submitted by Rolex to the Swiss Institut Fédéral de la Propriété Intellectuelle suggests they are trying to improve anti-magnetic capabilities. The text basically describes an invention related to a balance wheel, an oscillator and a regulating system, and discusses how resistance to magnetic fields can be improved. They discuss results from experiments with balance wheels made of lead-free brass which significantly improved the movement’s resistance to magnetic fields. They also discuss the importance of using materials with higher electrical resistance to reduce eddy current losses in the presence of magnetic fields. Materials like brass and ceramics were found to offer better performance compared to traditional materials like CuBe (copper-beryllium).
🤷♂️ This new Rolex advert is conspicuously missing some fan favourites. The rumour mill is turning fast!
🌠 Check out this Journe video of unique timepieces from the brand - like the one pictured above.
🦹♂️ Is time running out for the luxury watch as a status symbol?
✈ A Cycle of Misery: The Business of Building Commercial Aircraft.
🛏 Sleep tight: A curious history of beds through the centuries.
👿 Swearing is becoming more widely acceptable, linguistics experts claim.
🔎 Generative AI leads to … generative internet? Browser company Arc has released a search app for the iPhone that creates your own custom website based on your search.
💰 Online Reviews Are Being Bought and Paid For. Get Used to It.
🖨️ Rapid 3D printing with liquid metal.
🙈 Crazy finding: Male monkeys will incur a cost (forego a reward) to view the genitals of female monkeys or the faces of high-status males, but require payment to view the faces of low-status males.
🧥 The multi-decade work of animating Gogol’s “The Overcoat” by two Russian filmmakers.
🎂 As Facebook turns 20, here’s a look back at the first newspaper articles ever written about it.
🎯 Someone finally cracked the “Silk Dress cryptogram” after 10 years.
🥘 Might have shared this before, but pretty funny. In a 2,752-page lawsuit that will be heard by the Delhi High Court in May, restaurant chain Moti Mahal says it wants $240,000 and bragging rights for supposedly being the creator of… butter chicken!
✔ Slightly random link, but I found it useful: a printable full year calendar that fits on a single page.
😍 A napping polar bear took the people’s choice prize in the Wildlife Photographer of the Year Awards:
End note
I’ve gotta be honest… this has been a week of minimal reading and a non-existent finger on the pulse in the world of watches. The stand-out scandal for me was about a new watch release marketing the dial as being “inspired by the apocalyptic sunsets that fell over Vietnam” - as morbid as that seems, one can’t help but laugh at the insanity of their approach. You can read more about it here.
That said, as you will notice from the linked Instagram post, the offended parties appear to have taken their objections a step too far. War is never a pleasant topic, and there is no doubting the insensitivity of the original marketing… but to then use being offended as a form of justification for dictating how someone else’s business is run… seems entitled to say the least. It appears the brand subsequently altered their marketing material, so I suppose some good came out of this public objection. The rest is probably overblown.
Other than that, I will not take up any more of your time and wish you a pleasant week ahead!
Until next time,
F
🔮Bonus link: We’ll meet again
The intrepid logician Kurt Gödel believed in the afterlife. In four heartfelt letters to his mother he explained why.
Believe it or not, that “❤️ Like” button is a big deal – it serves as a proxy to new visitors of this publication’s value. If you enjoyed this post, please let others know. Thanks for reading!
So basically etablissage is ultimate project management :)
Thank for all the links as well, nice read on Boeing! I still think world would be better place with well managed flights on 380s ❤️
The bonus link was timely today as I got some heath news about a relative that isn't great and have been contemplating, well, things. I started to read the comments on that piece and decided those are best left for another day, but the main post hit the spot. Thanks for doing this even when busy.