With 1,700+ drone companies generating $10B+ annually in drone associated products and components, Shenzhen has built a hub for aerial mobility beyond comprehension to the rest of the world. Shenzhen dominates not because of cheap labor, but because of industrial density and a deeply connected local value chain. As a result, they’ve become leaders in production as well as deployment, with hundreds of thousands of flights throughout the city every year and a flexible regulatory approach that complements the region’s deep concentration of companies.

But the world has changed quickly. Drones have expanded beyond hobbyists capturing videos to become an essential tool for industry, infrastructure, defense and mobility.  As nations prioritize security and resilience, drones have become a critical technology; demanding a new approach to manufacturing, a new regulatory paradigm and ultimately a new U.S. domestic hub fully independent from Shenzhen. 

Several companies have emerged across fragmented ecosystems in the U.S.: Zipline now serves Dallas households with sub-30-minute Walmart deliveries. Skydio has moved to regional battery sourcing to diversify its supply chain. And many more startups have been testing across rural outposts away from the oversight of regulators. 

Each of these founders has stories of extraordinary efforts to navigate fractured regulations, old-school manufacturers, or forced to use questionable foreign components…  while dozens of other startups have died before even taking flight. 

In spite of the challenges, demand for drones is still growing including new federal mandates for millions of drones a year. A moment that will require coordinated emergence of manufacturing capacity, domestic engineering talent, reshored supply chains and creating entirely new technologies, and shaping new ecosystems and startups in the process. 

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TACTICALLY BUILDING AN ECOSYSTEM IN MICHIGAN

We’re seeing efforts across the U.S. to build drone ecosystems, many of which naively claim to be bringing the capabilities of Shenzhen to their own backyard.  

Michigan is taking a more tactical approach.  

As one of the last of America’s last true manufacturing ecosystems, Michigan has the DNA of designing things to move at 100MPH, bending metal, testing powertrains, crafting supply chains, shipping millions of units, and supporting the full stack talent base for complex manufacturing assembly. 

Now, that industrial DNA is being paired with progressive regulatory and economic development support through Governor Whitmer’s newly announced Executive Directive for the Advanced Aerial Mobility Initiative, which will be led by The Office of Future Mobility and Electrification (OFME). The directive accelerates early progress and establishes the foundational capabilities needed to scale a robust ecosystem including:

First Integrated Corridors and Ranges: Michigan has established the nation's first integrated network of secure corridors and testing ranges for scaling aerial mobility applications in logistics, public safety, defense, and critical infrastructure inspection. These assets are designed to work with startups and validate a regulatory model for security, operations and integration that can quickly scale to other states.  

The Advanced Aerial Innovation Region (AAIR) at Michigan Central and University of Michigan’s M-Air embody Michigan's regulatory approach, with a three miles of radial UTM coverage for Beyond Visual Line of Sight (BVLOS) in Detroit connected directly to a 40-mile research skyway corridor to Ann Arbor’s M-City. Through partnerships with Newlab, Airspacelink, and the FAA, startups are simultaneously testing and helping shape national drone policy, generating flight data that advances BVLOS standards beyond what's possible in less regulated environments. 

Deployment Partnerships: Industry is the primary first customer for drones and a required partner for startups. Michigan’s business ecosystem, composed of major automotive manufacturers, logistics companies, and infrastructure operators is already providing real-world pathways to traction and scaled-deployment to validate use-cases.  Recently, Amazon announced the launch of drone-based Prime Air in Pontiac , Munson Health making medical deliveries with Blueflite, Skyports ship-to-shore routes for Great Lakes cargo ships, and more commercial pilots to be announced in the coming months throughout the state. 

Transition to Scaled Production: Michigan's 11,000+ manufacturing facilities are already pushing out carbon fiber parts, sheet metal, high-power batteries, integrated electronics assemblies, wire-harnesses, and all the fixings required for scaled drone production. Michigan’s ability to tweak its capabilities is orders of magnitude easier than building from the ground up.  Newlab recently announced the addition of The 23rd Manufacturing Campus where advanced aerial mobility companies have already moved in to begin scaling production. 

An Embedded Talent Base: Michigan's hundreds of thousands of engineers excel at making complex moving things… with tens of thousands of engineers graduating in engineering, manufacturing and aerospace from Michigan-based universities every year. The world’s premier automotive ecosystem is bringing decades of experience in safety-first manufacturing, powertrains, design, supply chain management, and value-engineering to be a cornerstone from making dozens of drones a year to millions. 

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A HUB IN DETROIT 

From the day Newlab Detroit opened, drone startups from around the world have been landing to tap into world-class prototyping facilities, unique testing infrastructure, regulatory support from city and state government, and commercial pilots across Michigan. Startups in Detroit are moving faster, overcoming barriers that have stalled progress for drones for the past decade.

As a result, tens of millions of dollars are now moving to activate and scale a secure, resilient, and high-velocity ecosystem. New capabilities, testing corridors, and commercial pilots are drawing the next generation of aerial mobility companies to Detroit, helping close the gap to a domestic drone hub that is vital to our future economy.

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