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The name of the town is said to come from thebrown iron ore andpyrolusite which was mined in the region periodically from 1478 until 1942 (The German word for iron is Eisen, resulting in the town name "Eisenbach").
Eisenbach was once known for its strongwatchmaking industry, as traditionalGermancuckoo clocks were invented in theblack forest region of South-West Germany. They were, and still are, commonly produced in the region to be exported elsewhere and are a cultural symbol of the region as well as Germany.
As of 2019, there is acluster of 9 large industrial companies and numerous smaller companies which produce gears, precision tuned parts, and other mechanical parts. In 2012, there were over 1500 employees in this cluster, 1100 of whom werecommuters. The high level of employment in the manufacturing sector is considered unusual in the Black Forest region of Germany, which is more reliant ontourism as a whole.
Eisenbach is designated as an 'Air Spa' or 'Luftkurot', which is a designation German municipalities judged to have clean enough air can receive, and can use the status to charge guests with an additional health resort tax. Tourism in the municipality forms a significant part of its economy.