Economy

Modeling and Simulation

Modeling and Simulation

The Modeling and Simulation industry continues to grow in importance to the Hampton Roads region, accounting for high salaries and a 25 percent growth in employment.

Why is This Important?

Modeling and Simulation (M&S) refers to the process of developing a mathematical model of a real world process, such as the flow of containers through a port facility, and solving the model under different conditions. The information extracted from the model can be used to enhance the effectiveness of the real world process and increase efficiency and profitability.

How is Hampton Roads Doing?

Hampton Roads is one of the country's three leading regions in M&S along with Orlando, FL and Huntsville, AL. The unique strength in the Hampton Roads region is in command and control M&S for improving decision-making. The Virginia Modeling Analysis and Simulation Center (VMASC) at Old Dominion University and the US Joint Forces Command are key contributors to this sector of the economy.

The M&S sector continues to grow in importance within the Hampton Roads regional economy, as measured by a 42.1 percent increase in its contribution to the Gross Regional Product and a 25.4 percent increase in total employment between 2004 and 2007. The average M&S salary in Hampton Roads of $82,733 is more than double the region's average salary of $38,428. Furthermore, these jobs are spread throughout the region, with nearly 60 percent on the Peninsula and 40 percent on the southside of the Hampton Roads region.

Modeling and Simulation Economic Impacts (2000 dollars)

Factor	2004	2007	% Change
Output	$258.4 Million	$364.6 Million	41.1
Gross Regional Product	$167.3 Million	$237.8 Million	42.1
Employment	3,524	4,420	25.4
Average Annual Salary	$60,212	$82,733	37.4

The M&S industry is expected to continue its growth in Hampton Roads with an expected two-year growth rate of 7.3 percent and a five-year growth rate of 14.5 percent. Both projections far outpace the regional growth rate of 2 percent for the last decade.

What Influences Modeling and Simulation?

Currently the majority of activity is concentrated around military applications and the Department of Defense. To maintain growth, the M&S industry will likely need to expand into other application areas, such as homeland security, transportation, logistics, medicine, education, and gaming. The VMASC is leading cluster activities in many of these areas and both Norfolk State University and Hampton University are beginning M&S programs.