Croswell was one of the leading trading, industrial and shipping centers in the Thumb at the turn of the century. Lumbering was the main occupation. The Black River was used to transport millions of feet of timber from northern Sanilac County to Croswell. From Croswell, it was transported to Lexington, just five miles away, to be shipped to other areas. In 1845, when Ephriam Pierce built a sawmill on the west bank of the Black River, the resulting group of log cabins became known as Black River Community.

With minor changes along the way, it was the beginning of what is known as Croswell. The east bank residents named their new location Croswell in honor of Charles M. Croswell, Governor of Michigan from 1877 to 1878. In 1881, Croswell incorporated as a village, and became a city in 1905.

Today, Pioneer Sugar represents the sugar beet industry which became Croswell's leading industry after the Great Fire of 1881.