Benjamin Longstreth first began to process iron at this location in 1793. With iron acquired from Warwick Furnace, his French Creek Iron Works rolled bars into sheets and then slit them for nail rods. This was the first place in the US to make nails!
In 1813 Louis Wernweg, a respected engineer and bridge builder, acquired the nail works. Wernweg partnered with Thomas Odiorn, who invented a nail making machine. Twenty of these machines operated in a building that was powered by two water wheels. The cost for producing this cut nails was 66% less than those that had been produced by hand. By 1825, the Nail Works was the largest in the US.
One night, while Wernweg was watching the fire burning in the iron furnace, he was reminded of the story from Egyptian mythology of the Phoenix bird which burnt itself up at night, but arose all fresh and new in the morning. Inspired by this legend, he changed the name of the nail factory to the Phoenix Works. The name that Louis Wernweg had given to his factory became the name of the town.