Orlando Florida, October 4, 2025
News Summary
The federal government shutdown has raised serious concerns for Central Florida’s military simulation sector, particularly in Orlando. While some programs maintain operations due to mission essential designations, risks to small vendors and the stability of longer-term contracts loom. As the shutdown continues, industry leaders express worries over the financial strain on local small businesses, with some furloughs already reported. The shutdown may affect 3,000 military personnel in Orlando, predominantly civilians, highlighting the widespread implications of reduced government operations on employment and the local economy.
Orlando — The federal government shutdown has entered its third day, raising immediate concerns for Central Florida’s military simulation industry based in Orlando. Industry trade group leaders and local program offices say some work can continue because of existing mission classifications, but prolonged funding gaps risk disrupting contracts, payments to small vendors, and longer-term program stability.
What happened and who is affected
The National Center for Simulation (NCS), which serves as a trade association for the modeling, simulation, and training sector, reports that Most programs at NCS are categorized as mission essential, allowing some work to continue despite the shutdown. At the same time, Small businesses and startups, which comprise 90% of NCS’s membership, are particularly concerned about the shutdown’s impact.
The local footprint is substantial: The military employs around 3,000 personnel in Orlando, with 90% of them being civilians. Nationally, The U.S. modeling and simulation industry consists of over 300 companies, employing approximately 30,000 individuals nationwide, with an average salary exceeding $100,000. The simulation sector feeds Central Florida’s economy through jobs, government contracts, and technology development tied to multiple military and civilian training programs.
Immediate operational effects
Some program offices have reduced operations but remain active. The Naval Air Warfare Center Training Systems Division (NAWCTSD) in Orlando continues operations at reduced capacity, with most of its roughly 1,200 civilian employees being compensated through existing Navy Capital Working funds. At the same time, The Naval Acquisition Development Program reported nearly 60 employees were furloughed due to the federal government shutdown.
Industry leaders underline the uneven impact: programs designated as mission essential keep key work moving, while contractors and smaller suppliers face cash-flow and scheduling risk. Delays attributed to the shutdown may affect small contractors reliant on government support, impacting bill payments and contract timelines.
Broader staff and contract risks
There have been no widespread layoffs directly resulting from the shutdown; however, There have been no widespread layoffs directly resulting from the shutdown; however, earlier this year, the Department of Defense offered voluntary severance and early retirement options, which some employees accepted. At the same time, the Army’s Simulation and Training Technology (STRI) organization faces separate pressure: Up to 1,000 jobs at the Army’s STRI headquarters in Orlando may face cuts as the Department of Defense assesses potential streamlining and reductions.
STRI is one of 13 Program Executive Offices of the Army and is a significant player in simulation and training contracts, responsible for $3 billion of Orlando’s $7 billion simulation-related market. STRI’s majority of positions are civilian roles, excluding the contractors leveraging contracts awarded by the division. Officials say the office’s future is uncertain and no final decisions have been made regarding restructuring.
Local sentiment and industry perspective
George Cheros, president and CEO of NCS, has highlighted the role of simulation in providing efficient and safe training environments across service branches. This expertise is central to Central Florida’s cluster, but leaders warn that the longer the shutdown lasts, the greater the potential impact on the industry’s small firms and startups.
The recent turbulence in military operations has left employees feeling insecure about job security in Orlando and other locations. STRI has historically faced challenges, including being connected to a raid by Army investigators last year, although details about the investigation remain undisclosed. Decision-makers have emphasized priorities such as cost-efficiency and reducing redundancies as part of broader Defense Department reviews.
What industry numbers show
The U.S. simulation and modeling sector is a measurable economic force. As noted above, The U.S. modeling and simulation industry consists of over 300 companies, employing approximately 30,000 individuals nationwide, with an average salary exceeding $100,000. In Orlando, simulation-related programs and contracts amount to a multi-billion-dollar market, of which STRI controls a notable portion.
Outlook
Short-term continuity is supported by mission-essential designations and existing working funds for some civilian employees. However, small contractors and startups represent a high proportion of the local supplier base and are at most risk from payment delays and slowed contracting decisions. Local leaders emphasize that prolonged funding interruptions would increase the likelihood of broader program adjustments and financial strain across the cluster.
FAQ
Q: How many companies and workers are in the U.S. simulation industry?
A: The U.S. modeling and simulation industry consists of over 300 companies, employing approximately 30,000 individuals nationwide, with an average salary exceeding $100,000.
Q: What is the membership makeup of the National Center for Simulation?
A: Small businesses and startups, which comprise 90% of NCS’s membership, are particularly concerned about the shutdown’s impact.
Q: Are most NCS programs continuing during the shutdown?
A: Most programs at NCS are categorized as mission essential, allowing some work to continue despite the shutdown.
Q: How many military and civilian personnel work in Orlando?
A: The military employs around 3,000 personnel in Orlando, with 90% of them being civilians.
Q: Has the shutdown caused furloughs locally?
A: The Naval Acquisition Development Program reported nearly 60 employees were furloughed due to the federal government shutdown.
Q: What is NAWCTSD doing during the shutdown?
A: The Naval Air Warfare Center Training Systems Division (NAWCTSD) in Orlando continues operations at reduced capacity, with most of its roughly 1,200 civilian employees being compensated through existing Navy Capital Working funds.
Q: Are there potential job cuts at STRI?
A: Up to 1,000 jobs at the Army’s STRI headquarters in Orlando may face cuts as the Department of Defense assesses potential streamlining and reductions.
Q: How large a role does STRI play in Orlando’s simulation market?
A: STRI is one of 13 Program Executive Offices of the Army and is a significant player in simulation and training contracts, responsible for $3 billion of Orlando’s $7 billion simulation-related market.
Q: Have there been widespread layoffs tied to the shutdown?
A: There have been no widespread layoffs directly resulting from the shutdown; however, earlier this year, the Department of Defense offered voluntary severance and early retirement options, which some employees accepted.
Key features chart
| Feature | Value |
|---|---|
| U.S. companies in modeling & simulation | over 300 |
| U.S. employees (nationwide) | approximately 30,000 |
| Average salary (nationwide) | exceeding $100,000 |
| Military personnel in Orlando | around 3,000 (90% civilian) |
| NAWCTSD civilian employees | roughly 1,200 |
| Furloughed at Naval Acquisition Development Program | nearly 60 |
| STRI share of Orlando simulation market | $3 billion of $7 billion |
| Potential STRI job cuts | Up to 1,000 jobs |
| NCS membership: small businesses & startups | 90% of NCS’s membership |
Deeper Dive: News & Info About This Topic
HERE Resources
Beat the Heat: Indoor Activities in Central Florida
Orlando: The Rising Star in High-Tech Corporate Meetings
Additional Resources
- My News 13: Government Shutdown Raises Concerns for Central Florida’s Military Simulation Industry
- Wikipedia: Military Simulation
- WFTV: US Army Eyeing Cuts, Orlando Headquarters 1,000 Jobs at Risk
- Google Search: Military Simulation Industry Orlando
- Breaking Defense: Advancing Military Training with VR and Simulators
- Encyclopedia Britannica: Military Training
- Lockheed Martin: Training and Simulation
- Google News: Military Simulation Technology
Author: STAFF HERE ORLANDO WRITER
ORLANDO STAFF WRITER The ORLANDO STAFF WRITER represents the experienced team at HEREOrlando.com, your go-to source for actionable local news and information in Orlando, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Orlando International Fringe Theatre Festival, Megacon Orlando, and Central Florida Fair. Our coverage extends to key organizations like the Orlando Economic Partnership and Hispanic Chamber of Commerce Metro Orlando, plus leading businesses in leisure and hospitality that power the local economy such as Walt Disney World Resort, AdventHealth, and Universal Orlando. As part of the broader HERE network, including HEREJacksonville.com, HEREPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
