Solano County releases Economic and Community Index

Solano County's economy is projected to add more than 1,200 jobs annually during the next four years, driven largely by healthcare and life sciences, even as manufacturing demand softens, housing values decline and population growth remains sluggish.

That was the message brought to the Board of Supervisors Tuesday as the county released its 2025 Index of Economic and Community Progress.

"The Index highlights the importance of collaboration across Solano County. Partnerships among the County of Solano, Solano Economic Development Corporation (Solano EDC), the Solano Workforce Development Board, local cities, educational institutions, and private-sector employers continue to support workforce development, economic opportunity, infrastructure investment, and long-term community resilience," the report reads. "Progress in educational outcomes, sustainable energy initiatives, transportation improvements, and economic development efforts all contribute to strengthening our local economy and improving quality of life for residents."

Dr. Robert Eyler of Sonoma State University helped the county with the report and briefed Supervisors on it in person. He said job growth is resilient in both Solano County and the nation, and he expects healthcare jobs to bolster economic development and growth in the county, even as the population fell last year. He later acknowledged that job growth has "leveled out" over the last year.

"The forecasts going forward remain relatively robust," he said.

Eyler referenced rising energy prices and the "K-Shaped Economy" as threats for the county moving forward, but said the housing market has become more affordable, at least for the time being. Healthcare and the life sciences remain opportunities for job growth in the county over the next four years, he said, and federal spending could help reshape Solano County's economic role in the region.

Manufacturing demand is down 2.8 percent, and transportation and warehousing jobs are down by 2.8 percent, Eyler said. Private education has shown 5.7 percent growth in labor demand.

"We are concerned a little bit about the future of manufacturing," he said.

Agricultural values dipped in 2024 as compared to 2023, but Eyler said the wine industry in the county exhibits room for growth. He said agriculture could lose about 1.3 percent of its workforce over the next four years in the county, but agricultural jobs are expected to increase statewide. The county is projected to grow at a rate of 1,282 jobs on average annually.

Eyler then noted changes in social equity markers during the past six years. Median Household Income is roughly the same as 2020 and lower than in 2023. Poverty rates are lower than 2020 but about the same as 2023. Homeownership is higher than it was during the pandemic but roughly the same as it was in 2023, Eyler said.

Housing prices in Solano County are projected to fall 2.8 percent over the next year, he said, the highest drop of any of the nine Bay Area counties. Solano is projected to lose about 2.1 percent more home value than the state as a whole. Less than 2,000 residential building permits are issued most years countywide, he said.

"The trend is we are seeing this really slow, steady growth of commercial space," Eyler said.

Sacramento's population growth is expected to vastly outpace California as a whole and the Bay Area. Solano County is expected to outpace California and the entire Bay Area's growth by percentage in the coming years.

Asked by Supervisor Wanda Williams about major manufacturing job losses in the county, Eyler said the county should consider growth in life sciences, advanced manufacturing and food and beverage. He said the county's location between the major markets of the Bay Area and Sacramento has long been a strategic advantage for companies looking to invest in the region, and he referenced the possibility of shipbuilding in the area between now and 2030.

"It doesn't mean that those folks aren't going to be reabsorbed in some fashion," he said of skilled workers laid off at Budweiser and other manufacturing plants.

Eyler said the overall manufacturing outlook in the county is "marginally positive but not shockingly positive."

Asked by Supervisor Mitch Mashburn, Eyler said inflation functions as a regressive tax because more of the burden is focused on lower and middle-income families. Mashburn said those people have already seen an increased burden in recent years because of cuts to the social safety net. Mashburn also asked if growth will be significant in government jobs like military and corrections jobs.

"It looks like it is going to slowly creep for both Solano County and California," Eyler replied.

Supervisor Cassandra James asked the professor what infrastructure spending would best benefit job growth. He said water and power infrastructure are critical for counties looking to grow.

Williams asked how the county could expand tourism and entertainment revenue. Eyler said the region is incredibly competitive in that sector.

"You have to think about why people would come to Solano County," he said. "Are you giving them a regionally differentiable experience?"

Copyright 2026 Tribune Content Agency. All Rights Reserved.