In Auburn Hills, Michigan, a factory that had sat empty for months, surrounded by silent warehouses once bustling with the auto industry, is now a hub of innovation. Last year, a startup named Swarm Defense Technologies moved into a section of the building to begin manufacturing drones for defense. Demand quickly soared, and by summer, the company had expanded to fill the entire 14,000-square-foot space.
Today, 47 dedicated Swarm employees are hard at work in the expansive factory, churning out thousands of drones each month for the U.S. military and other clients. These compact drones, just over 10 inches long and weighing less than two pounds, are crucial for testing anti-drone systems and simulating attacks. This surge in activity has transformed the factory into a vibrant hive, contrasting sharply with the numerous ‘For Lease’ signs still scattered across the area.
Swarm co-founder Kyle Dorosz, 33, notes the immense demand for their drones, used to provide targets for anti-drone systems and for training. He emphasizes that producing drones in this location ‘feels right,’ given the region’s inherent manufacturing legacy.
Swarm is just one example among hundreds of defense technology companies igniting a manufacturing resurgence in America’s industrial heartland. Lured by skilled local workforces, lower labor costs, and generous state cash incentives, these companies are establishing advanced manufacturing facilities in former factories or constructing new state-of-the-art sites across Michigan, Ohio, Pennsylvania, Rhode Island, and Delaware.
Each month, Swarm’s factory produces thousands of drones.
Ohio, for instance, became home to a new $1 billion factory built by Anduril, an AI-powered weapons manufacturer, in January. This facility will produce drones and other AI-enabled weaponry, with further expansion planned for Rhode Island and Mississippi. Meanwhile, Regent, a shipbuilding startup, is building a factory in Rhode Island to create electric sea gliders for military use, and Denmark’s UXV Technologies opened a drone and robotics manufacturing plant in Pennsylvania last year.
These strategic factory locations offer both business advantages and political appeal. President Trump, who has championed major domestic defense projects and imposed tariffs on imported goods, has pushed for a strong emphasis on American manufacturing. His administration has also restricted the U.S. military from purchasing defense products, like drones, from foreign adversaries such as China.
Simultaneously, state and local officials are actively seeking to attract defense tech firms, eager to create new jobs and boost their economies. Senator Jon Husted, a Republican from Ohio, highlights his state’s ‘competency in making things,’ noting that national security now hinges on domestic production. Having witnessed the decline of manufacturing firsthand, Husted expressed his excitement about Anduril’s Ohio project, remarking on the long, tough period for local manufacturing.
Christian Garrett, an investor at 137 Ventures (which has backed defense tech giants like Anduril and Palantir), advises startups to choose factory locations strategically. He explains that industrial towns in the Midwest and Northeast are particularly attractive because establishing a presence there can cultivate goodwill with federal government and military officials. Garrett notes that government stakeholders see these investments as a direct way to bring valuable jobs to these states.
A model of Regent’s electric sea glider at a factory in North Kingstown, R.I.
While AI and autonomous systems mean these new defense tech firms won’t require hundreds of thousands of manual laborers, Garrett points out that they offer training in advanced skills, which can be transferable to other tech-sector roles.
For Zachary Mears, Anduril’s senior vice president of strategy, the decision to build in Ohio was straightforward. Although Anduril already had a factory at its California headquarters, expansion was necessary to meet product demand. Ohio’s offer of a $310 million grant and tax-incentive package was a decisive factor. The five-million-square-foot facility, currently under construction, is expected to be completed early next year. Designed with a modular layout for versatile production, it is projected to employ 4,000 people.
Mears states that the combination of a skilled workforce, existing infrastructure, and favorable logistics made Ohio an ideal choice. Billy Thalheimer, CEO of Regent, echoes this sentiment, explaining that his startup chose its Rhode Island coastal factory location due to generations of local expertise in boatbuilding. Thalheimer, 33, finds Rhode Island a ‘Mecca for this kind of talent,’ and hiring locally proves more cost-effective than relocating specialists. Last March, Regent secured a $10 million contract to supply the Marine Corps with its advanced sea gliders.
Billy Thalheimer, the chief executive of Regent, said hiring local talent with experience in boatbuilding was more affordable than relocating experts from out of state.
Maddie Macfarlane, a former Navy officer, joined Regent last year as a global supply manager, drawn by the opportunity to live in Rhode Island and contribute to meaningful work. She highlights the state’s rich boatbuilding heritage, which provides a pool of skilled workers, and the nearby Naval War College, which creates a valuable ‘pipeline for defense.’However, Aaron Slodov, CEO of Atomic Industries, a manufacturing firm in Warren, Michigan, and co-founder of a domestic manufacturing conference, cautions that developing operations in former industrial towns requires substantial time and meticulous long-term planning. Companies often face complex supply chain challenges, and achieving large-scale production can take years.
In March, Regent signed a $10 million deal to supply the Marine Corps with its vessels.
Nonetheless, companies like Swarm provide compelling evidence of what’s possible. Founders Kyle Dorosz and Ryan Sigmon, both drone enthusiasts and entrepreneurs, initially established Firefly in 2017 to create drones for light shows, serving mostly local entertainment companies. Last year, they pivoted to defense manufacturing, rebranding as Swarm. They discovered an empty factory in Auburn Hills, previously used by Qualcomm for wireless computer chip production. Converting the space for drone manufacturing was seamless, thanks to local welders and workers experienced in building assembly lines, according to Sigmon.
Today, the Army, Air Force, and Navy are all customers of Swarm’s drones, which take less than five minutes each to produce. Swarm also continues to fulfill orders for entertainment drones.
Dorosz expresses immense pride in their local production, noting that nearly every employee has parents or grandparents who worked on nearby auto assembly lines. It’s a deep connection to the region’s manufacturing past, now fueling its future.
A Regent sea glider undergoing testing in North Kingstown.