Connecticut's furniture industry has declined significantly, with fewer factories remaining compared to the mid-20th century. Key players include Waterbury and Naugatuck, focusing on high-end and specialized products. Recent data shows around 50 active factories employing approximately 5,000 workers, a sharp decline from the 1990s peak.

The decline stems from automation, globalization, and competition from imports. From 1990 to 2020, the number of furniture manufacturing firms dropped from 100 to 50 (U.S. Census Bureau, 2022). Employment fell from 15,000 to 5,000, with automation reducing labor needs. Globalization increased reliance on cheaper imports, particularly from China and Vietnam. Connecticut's government has responded with grants and tax incentives, supporting innovation and sustainability. However, the industry remains vulnerable to economic shifts and supply chain disruptions. The state’s remaining factories now emphasize customization and niche markets, leveraging regional skilled labor. The 2021 Connecticut Economic Report noted furniture manufacturing contributes $1.2 billion annually, though this is 40% below its 2000 peak. Labor costs and reliance on legacy supply chains further hinder recovery, with 60% of firms reporting challenges attracting younger workers. Despite these challenges, initiatives like the "Connecticut Manufacturing Innovation Collaborative" aim to modernize facilities and diversify product lines, though long-term viability depends on overcoming structural economic headwinds.