Help raise public and business awareness of the simulation and training industry. Push for strong incentive programs designed to bring more aerospace/defense related jobs to Florida. Continue Florida's Defense Reinvestment Grant Program, which supports U.S. military facilities around the state. |
Shooting for the Stars
A resurgence in the U.S. space program is bringing more high-paying jobs to Florida's aerospace industry. At the same time, a flow of Department of Defense contracts is boosting military-related spending in the state, particularly in the simulation and training industry.
"Florida is a major hub for the aerospace industry," says Casey Barnes, project manager at Enterprise Florida. The state's economic development organization estimates Florida has more than 330 aerospace firms, employing nearly 30,000 at an industry average wage of $63,461.
"In 2007, the aerospace industry will definitely be growing," says Barnes. "There are some exciting things on the horizon."
For instance, Lockheed Martin, the state's largest aerospace company, was recently awarded a major contract for developing, testing and assembling the Orion spacecraft -- the successor to the space shuttle scheduled to be launched from Cape Canaveral by 2014.
Central Florida is also the longtime center of the nation's military simulation industry, with more than 140 companies producing state-of-the-art training equipment for helicopters, tanks, aircraft and other weapons.
"For 2007, we expect to see continued steady growth, being driven by the military budget," says Russ Hauck, executive vice president of the National Center for Simulation in Orlando. "There is some hedging on that forecast -- especially if money needed for current military operations is taken out of R&D funds -- but right now we're not seeing that."
 Military boost: Central Florida has the nation's largest cluster of companies that produce simulation training equipment for the military. |
In addition to spending on technology-related contracts, the military has a statewide impact through 21 installations and three unified commands.
Sonya Montgomery, executive director of the Florida Defense Alliance, an Enterprise Florida initiative, estimates total defense-related spending creates more than 714,000 jobs in the state with a total economic impact exceeding $44 billion. "Florida's military bases are highly valued by the nation and by Florida's communities," she says.
To support those military bases, the state awards Defense Reinvestment Grants to local communities for infrastructure projects such as water and sewer connections. In October, then-Gov. Jeb Bush awarded $1.15 million in grants to 10 communities to support base retention and economic diversification.
"This program has gone a long way towards making Florida the most military-friendly state in the nation, and I hope the next governor and the Florida Legislature will continue to support this valuable program," Bush said.
Another state-supported initiative delivers aerospace-related technology training. Supported by a $1.2-million grant from Workforce Florida Inc., the Aerospace Resource Center in Jacksonville focuses on the educational and training needs for occupations critical to the aviation and aerospace industry.
 Launching orion: The Orion crew vehicle will launch aboard an Ares I rocket (illustration on left). The illustration above shows the crew vehicle preparing for a lunar landing. |
Lookheed Martin
Advanced Space Exploration
In the next decade, American astronauts will head into space aboard the Orion capsule -- similar in design to the Apollo command modules that landed on the moon but larger and more versatile. It's a key step for the president's space exploration initiative and an important economic booster for Florida's aerospace industry.
Last August, NASA selected Lockheed Martin as its prime contractor to design and build the Orion, which will measure 16.5 feet in diameter and carry up to six crew members to the International Space Station and transport four astronauts to the moon. Under NASA's timetable, the first Orion launch with humans onboard is planned for 2014 at the latest, with a moon landing by 2020.
Lockheed Martin -- which has nearly 10,000 employees in various divisions throughout Florida -- will be responsible for the design, development, testing and evaluation of the new spacecraft under a contract worth $3.9 billion. While the majority of the vehicle engineering work will be done at NASA's Johnson Space Center in Houston, final assembly of the vehicle will be completed at Kennedy Space Center.
"In the past, Kennedy Space Center has been known as the launch port for the space program," says Casey Barnes, project manager at Enterprise Florida. "Now with assembly, testing and refurbishment, there will be much more work to go around."
Adrian Laffitte, director of Florida government relations for Lockheed Martin Space Systems in Cape Canaveral, says the Orion contract will bring 300 to 400 new jobs to the state. "We are gearing up now to fill these positions, which are primarily hands-on technicians who will be physically working with the service and command modules of Orion," he says.
With the space shuttle phasing out in 2010, Laffitte says it's important to have new jobs available for that skilled workforce, which in the past has not done assembly operations. "The state is helping with training incentives, creating a win-win for NASA, Lockheed Martin and the state," he says. "Having the assembly work done in Florida also opens the door for other subcontractors."
Currently, Lockheed Martin has about 1,500 employees at Cape Canaveral in several groups, including Space Systems, which focuses on unmanned satellites, and Space Operations, which is responsible for the cargoes that go into the shuttle and the Russian Soyuz spacecraft.
"Orion is definitely a big addition for the aerospace industry, and the state's incentives helped make it happen," Laffitte says.
Lockheed Martin is also partnering with Boeing in a new United Launch Alliance that will combine the Atlas and Delta booster rocket programs. The aerospace giants are currently partners in the United Space Alliance, which processes, maintains and operates the space shuttle.
 Consistent growth: "We have a good talent pool in central Florida," says DEI Services CEO Jose Diaz. |
Company to Watch
DEI Services: A Wave of Simulation
Using credit cards for startup capital, Jose Diaz founded DEI Services a decade ago to provide training devices and systems for the military. Today, DEI Services is one of the Orlando area's most successful military simulation companies, with a projected $15 million in 2006 revenue.
"We've won a number of contracts in the past year and hired more than 50 new people," says Diaz, president and CEO. "We expect to have 135 employees by year-end and are aiming for $20 to $25 million in revenue in 2007."
Recognizing its rapid expansion, Inc. magazine named DEI Services to its 2006 list of the top 500 fastest-growing U.S. companies. In addition, the U.S. Small Business Administration recognized Diaz as its national "Minority Small Business Person of the Year."
Currently, the Winter Park company is building a variety of large simulation devices, including maintenance trainers for Abrams tanks, Bradley fighting vehicles and Blackhawk and Chinook helicopters. "We're also working with the Navy on T-44 flight trainers, and we're building an F-5 fighter trainer for the National Guard," says William Patton, senior vice president.
DEI builds its trainers using Orlando subcontractors and ships its products to military facilities throughout the U.S.
"We've been able to enjoy controlled consistent growth, thanks to quality people," says Diaz. "About 70% of our staff are engineers whose wage levels are well above average. We have a good talent pool in central Florida."
DEI Services, like other simulation companies, is working with military procurement offices to reduce the time between identifying a training need and delivering the simulation equipment. That's particularly important, says Diaz, as the military adjusts its tactics in Iraq and Afghanistan.
Aerospace
High-Ranking
According to Enterprise Florida, the state ranks among the ...
Top 3 in space, aerospace and aviation employment
Top 3 in communications equipment manufacturing
Top 3 in aircraft engines and parts manufacturing
Top 4 in guided missiles, space vehicles and parts manufacturing
Top 4 in satellite communications
Top 5 in Department of Defense prime contract awards