Detroit turns to drones in new era of transportation

In July, Michigan Gov. Gretchen Whitmer signed an executive order to establish the state’s Advanced Air Mobility Initiative and boost its ambitions in the drone industry, especially in preparing its workforce, manufacturing and infrastructure capabilities.

And Detroit, which for generations has led the way in the United States’ automotive industry, is looking to build on that legacy with drone manufacturing as well as experiment with various use cases.

As if to demonstrate what is possible, the city and state last month collaborated with urban drone network company Aerialoop to pilot a drone logistics program. Separately, the former Michigan Central train station, which now is home to almost 250 companies and startups, marked its Drone Day by delivering doughnuts to construction workers on the city’s riverfront. It’s the latest chapter in Detroit’s revival, 12 years on from its filing for bankruptcy, led by emerging drone technology hand-in-hand with its automotive past.

“If you told me [in the past] that I would have an office on the 12th floor of Michigan Central, the most iconic building that was supposed to be imploded, and now it's a beautiful building, and I have an air traffic control system for drones in downtown Detroit, I'd say you're crazy,” said Michael Healander, CEO of AirSpace Link, a company that tracks drones in the air and is one of the companies involved in the logistics pilot program.

Detroit — and Michigan as a whole — is not the only state or local government to try and stake its claim as a leader on drones. North Dakota has invested millions to build out its drone infrastructure, while numerous other states see the opportunity for the technology to carry out deliveries, survey damage from natural disasters and help with public safety and healthcare. States are also looking to control their airspace more and deal with unauthorized drones. Michigan in particular recently launched a statewide challenge to use drones to help agencies solve some of their most pressing challenges.

But Detroit remains an interesting prospect for the technology, especially given its manufacturing history. Ford, General Motors and Stellantis — formerly Chrysler — remain key employers in the city and its surrounding area even after the industry fell on hard times in 2008. The Detroit Regional Chamber estimates that 26 manufacturers have headquarters or technology centers in Michigan, with the entire automotive industry contributing $304 billion each year to the state’s economy.

And drone manufacturing represents an interesting new avenue for a state and city that already has a skilled workforce, the equipment needed to produce them and access to much of the materials necessary to build them.

One company looking to be at the forefront of drone manufacturing in Detroit is Birdstop, which moved its headquarters to the city from San Francisco earlier this year. While most of the supply chain for drone-building is controlled by China, company CEO Keith Miao estimated a domestic supply chain can be set up in 18 months by leveraging what already exists in Michigan.

On-shoring a supply chain also helps for national security purposes, given the distrust of Chinese-made drones and the law against their use by federal agencies contained within the 2024 National Defense Authorization Act.

Detroit’s manufacturing past can play into that. For example, Miao noted the importance of making cameras for drones, which typically contain several. Car manufacturers have already been producing cameras for their own products, so tapping into that existing expertise can ramp things up for drone production. 

Still, t won’t be easy, given China’s dominance.

“Ourselves going at it and trying to set up a supply chain from scratch, you're bound to fail,” Miao said. “The work that a nation-state would do over decades, you can't do as one company overnight, but tap into things that already exist, tapping into things that did take a century to set up. The auto industry here, and all the suppliers, this whole world already exists in producing hundreds of millions of things over the past years. When we start leveraging some of that, then it becomes not only possible, but if we do it right, pretty likely.”

And it’s not just doughnut delivery that excites local drone companies as a use for their products. Firefly Drone Shows, based in nearby Auburn Hills, supports around 250 light shows a year, while sister company Swarm Defense is used as targets to test various counter-unmanned aerial systems technology. Amid emerging worries over swarms of drones wreaking havoc at sensitive sites, as well as their use in warfare in Ukraine and elsewhere, company CEO Kyle Dorosz said their work is vital.

“It's not quite enough to be able to take down one drone at a time,” he said. “These counter-UAS solutions really need to be able to address swarms of drones coming in waves, so we're able to easily mimic that threat profile on U.S. soil, so that they can test these systems against different types of swarming attacks.”

AirSpace Link’s air traffic control also showed its full range of capabilities last year during a Green Day concert in Detroit’s Comerica Park, when an unauthorized drone flight nearby forced the band off stage. Using the technology, officials were able to identify the drone operator and apprehend them. AirSpace Link is now tied into more than 800 airports nationwide, Healander said.

“It's a perfect example of the need to be able to control the airspace,” said Jared Stasik, a partner at Detroit Venture Partners, which has invested in various drone and other technology companies. “As more drones are made here, more people are going to want to fly drones recreationally as well and this proliferation needs to be managed.”

The regulatory environment looks set to encourage more drone manufacturing and use too. President Donald Trump issued two executive orders in June on drones, while the Federal Aviation Administration is finalizing its rules on flying drones beyond the visual line of sight that would look to integrate them fully into American airspace.

“That's what excites me: we are now going to see drones flying organized, securely through our airspace and all the tools for state and local governments and public safety will be provided, and there's funding behind that as well,” Healander said.