In 1857, a railway station on the Olten-Bern line was built in Murgenthal. The wooden bridge was built over the Aare river to Fulenbach in 1863. With the railroad and access to the "Rotkanal", several factories were built in Murgenthal. In 1856 the Grossmann (later Künzli & Co.) weaving factory opened. In 1881 Arnold Künzli founded the knitting factory of His & Cie, which operated until 1976 in Murgenthal. Additionally, a wicker and wood products factory opened in 1894. The village continued to develop due to the railway and factories. In 1920, about 63% of the working population worked in manufacturing. By 2005 that number had dropped to only 28%. The number of jobs in the municipality has dropped to about half of the peak number in 1950 (1,485 jobs) due to factory closings.