The factory in Auburn Hills, Michigan, once a silent monument to a bygone era of car manufacturing, had been empty for months, surrounded by equally vacant warehouses.
Last year, however, a dynamic startup named Swarm Defense Technologies moved into a section of the building, beginning its mission to produce drones for national defense. Demand for their innovative drones exploded so rapidly that by summer, the company had taken over the entire 14,000-square-foot facility.
Today, 47 dedicated Swarm employees tirelessly work in this expansive space, churning out thousands of drones monthly 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. Swarm’s bustling factory stands as a beacon of activity in an area still dotted with ‘For Lease’ signs.
Swarm is one of hundreds of defense technology companies building factories in once-vibrant industrial cities across the Midwest and Northeast.
“There was a huge demand for drones like ours to provide targets for anti-drone systems or to train drones on,” explained Kyle Dorosz, 33, a co-founder of Swarm. He emphasized that “everything about making drones in this place feels right,” highlighting the region’s inherent “DNA” for manufacturing.
Swarm is not alone. Hundreds of defense technology companies are sparking a manufacturing renaissance in formerly thriving industrial cities throughout the Midwest and Northeast. Attracted by readily available local talent, competitive labor costs, and substantial state cash incentives, these pioneering firms are establishing modern production facilities or repurposing old factories in states like Michigan, Ohio, Pennsylvania, Rhode Island, and Delaware, all to build the cutting-edge weaponry of the future.
Each month, Swarm’s factory produces thousands of drones.
In January, Anduril, a leading artificial-intelligence-backed weapons manufacturer, announced plans for a massive $1 billion factory in Ohio. This facility will produce drones and other AI-powered weapons, and the company has since revealed intentions to expand with additional factories in Rhode Island and Mississippi.
Regent, a shipbuilding startup, is actively constructing a factory in Rhode Island to develop electric sea gliders for military applications. Furthermore, UXV Technologies, a Danish drone and robotics firm, established a manufacturing facility in Pennsylvania last year, underscoring the region’s growing appeal.
The strategic placement of these factories serves both sound business principles and political objectives. President Trump, who has championed significant defense projects since assuming office, advocates for increased domestic manufacturing and has imposed strict tariffs on imported goods. He has also prohibited the U.S. military from acquiring products, such as drones, from foreign adversaries like China.
Simultaneously, state legislators and local officials are keenly motivated to draw defense tech companies, recognizing their potential to create vital jobs and stimulate local economies.
“America is waking up to the fact that our national security depends on making more stuff in America,” stated Senator Jon Husted, a Republican from Ohio. He proudly added that states like his possess a natural “competency in making things.”
Mr. Husted, whose father once worked at a General Motors factory that eventually closed, expressed his excitement upon learning about Anduril’s Ohio project this year. “I’ve seen the other side of this, where it was tough going for manufacturing for a long time,” he reflected.
Christian Garrett, an investor at 137 Ventures — a venture capital firm that has backed defense tech giants like Anduril and Palantir — disclosed that he actively encourages startups to strategically consider their factory locations. He noted that industrial towns in the Midwest and Northeast are particularly attractive, as establishing a presence there can cultivate goodwill with both the federal government and the military.
A model of Regent’s electric sea glider at a factory in North Kingstown, R.I.
“We’re looking at the government and the Pentagon as the end customer,” Mr. Garrett explained, emphasizing that the government understands “that supporting these companies means bringing valuable jobs to these states.”
While advances in artificial intelligence and autonomous systems mean these modern defense tech firms may not employ hundreds of thousands of workers like their industrial predecessors, Mr. Garrett highlighted that they can still equip workers with transferable skills for other emerging tech sectors.
For Zachary Mears, Anduril’s senior vice president of strategy, the decision to build a factory in Ohio was straightforward. Although the company already operated a facility at its Costa Mesa, California, headquarters, expansion was necessary to meet escalating demand. Ohio’s offer of a $310 million grant and tax-incentive package made it an undeniable choice, he noted.
The five-million-square-foot facility, currently under construction, is designed to be modular for adaptable production of various products and is anticipated to be completed early next year. Anduril projects that it will employ 4,000 people at this new site.
“The access to work force, the existing infrastructure and the logistics of the site all just made sense,” Mr. Mears affirmed.
Workers in these historically industrial towns often possess unique and valuable skills for defense tech companies, observed Billy Thalheimer, CEO of Regent. His startup is building a factory along the Rhode Island coast near North Kingstown, partly capitalizing on the residents’ multi-generational experience in boatbuilding.
“Rhode Island is actually Mecca for this kind of talent,” said Mr. Thalheimer, 33, adding that it was significantly more cost-effective to hire skilled local workers than to import boatbuilding experts from other states. In March, Regent secured a $10 million contract to supply the Marine Corps with its advanced sea vessels.
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. She was drawn to the role because it allowed her to remain in Rhode Island while contributing to work she deeply believed in. She noted that the state’s rich boatbuilding heritage provided “lots of skilled workers,” and the proximity of the Naval War College created a natural “pipeline for defense talent.”
However, Aaron Slodov, CEO of Atomic Industries, a manufacturing firm in Warren, Michigan, and co-founder of a conference promoting domestic manufacturing, cautioned that establishing operations in former industrial towns “takes time and long-term planning.” He emphasized the complexities of supply chains and the years it can take to achieve high-volume manufacturing.
In March, Regent signed a $10 million deal to supply the Marine Corps with its vessels.
Nevertheless, companies like Swarm provide a compelling example of successful revitalization. Co-founders Kyle Dorosz and Ryan Sigmon, both drone enthusiasts and entrepreneurs, initially launched Firefly in 2017, producing drones primarily for entertainment light shows.
Last year, Dorosz and Sigmon strategically pivoted their company to focus on defense drones, rebranding as Swarm. They discovered an ideal empty factory in Auburn Hills, previously utilized by Qualcomm for wireless computer chip manufacturing. The space was efficiently adapted for drone production, thanks to skilled local welders and workers experienced in building assembly lines, Sigmon explained.
Today, the U.S. Army, Air Force, and Navy are key buyers of Swarm’s drones, each of which can be manufactured in under five minutes, Dorosz proudly stated. Swarm continues to produce drones for entertainment purposes alongside its defense contracts.
“We’re just excited to be making this here,” he remarked about the factory. He added that almost every employee working at the facility had a parent or grandparent who had once worked on an assembly line at one of the nearby auto factories, underscoring the deep-rooted manufacturing legacy of the area.
A Regent sea glider undergoing testing in North Kingstown.