Since the establishment of the Habsburg rule in the 18th century, Timișoara has been an important commercial center. The economy started to flourish as a result of Austrian colonization, ethnic and religious variety, and inventive regulations. The technicians and artisans who arrived in the city formed guilds and contributed to the development of the city’s economy. Notably, Timișoara became the site of the first beer plant in what is now Romania in 1717.
Numerous contemporary advancements were developed during the Industrial Revolution. It was the first city in the monarchy to have street lighting, as well as the first city in continental Europe to have electric illumination. During this period, the Bega River was also channeled. It was the country’s first navigable canal. This allowed Timișoara to maintain touch with Europe, and possibly the rest of the globe, through the Black Sea, resulting in the local growth of commercialism. The Hungarian Kingdom’s railway system reached Timișoara in the nineteenth century.
Timișoara was the first city in the country to have international lines, and the city’s economy has grown as a result of increased foreign investment, particularly in high-tech areas. Timișoara is ranked fourth in the country in terms of living conditions. Timișoara was dubbed “Romania’s economic showpiece” by the French magazine L’Expansion in late 2005, and the growing number of international investments was described to as a “second revolution.”
Aside from internal local investment, substantial international investment has come from the European Union, mainly Germany and Italy. Continental AG has been manufacturing tires since building a facility in 2000. The Linde Group manufactures technical gases, while the Dräxlmaier Group manufactures wire molds for BMW and Audi automobiles. Kromberg & Schubert, a German firm, manufactures wiring for Volkswagen and other cars. Furthermore, Swiss company FM Logistic, already present in Timiș County for Nestlé, P&G, and in Bucharest for Cora, L’Oréal, Sanofi Aventis, and Yves Rocher, and for companies like PROFI Rom Foods, BIC, Kraft Foods, or SCA Packaging—offering domestic transport services and international transport services for Bricostore, Arctic, Danone,Unilever, or Contitech, the growth of FM Logistic in Romania Nestlé manufactures waffles on this location. McDonald’s, KFC, Pizza Hut, Subway, and Starbucks are among the chain eateries present.
Iulius Mall Timișoara and Retail City Timișoara are the city’s two shopping malls. Timișoara Centrum, the third, will be finished in 2017.
Flextronics, a firm based in the United States, has a factory in the city’s west for the manufacturing of mobile telephony and government inspection department gadgets. The firm lay off 640 employees in 2009. Procter & Gamble, an American corporation, produces washing and cleaning chemicals in Timișoara. Smithfield Foods, the world’s biggest hog and pig processor, has two businesses in Timișoara and Timiș County: Smithfield Ferme and Smithfield Prod.
Timișoara, like the rest of Romania, had an economic slowdown in 2009 as a result of the worldwide economic slump.