The resurgence of defence manufacturing in America’s once-vibrant industrial hubs is reshaping the defence technology landscape, with startups like Swarm Defense Technologies leading the charge. The transformation of a vacant factory in Auburn Hills, Michigan, into a bustling drone production facility underscores a broader trend: the revival of domestic manufacturing in the heartland of America’s auto industry.
Swarm’s journey from a startup specialising in entertainment drones to a key supplier of defence technology illustrates the adaptability and potential of these industrial towns. The company’s rapid expansion—from occupying an 8,000-square-foot section to taking over the entire 14,000-square-foot factory—reflects the surging demand for drones in military applications. Today, 47 employees produce thousands of drones each month, catering to the U.S. military and other clients. These drones, measuring just over 10 inches and weighing less than two pounds, are instrumental in testing anti-drone systems and simulating attacks.
“There was a huge demand for drones like ours to provide targets for anti-drone systems or to train drones on,” said Kyle Dorosz, 33, a co-founder of Swarm. He added that “everything about making drones in this place feels right,” since it was “in the DNA of this place.”
Swarm is not alone in this revival. Across the Midwest and Northeast, defence technology companies are reviving manufacturing in industrial cities, drawn by local talent, affordable labour, and state incentives. Anduril, an AI-backed weapons manufacturer, is constructing a $1 billion factory in Ohio to produce drones and AI-enabled weapons, with additional facilities planned in Rhode Island and Mississippi. Regent, a shipbuilding startup, is building a factory in Rhode Island to manufacture electric sea gliders for military use. UXV Technologies, a Danish drone and robotics company, has already established a manufacturing facility in Pennsylvania.
The strategic placement of these factories is as much about business as it is about politics. President Trump’s push for domestic manufacturing, coupled with tariffs on imported goods and restrictions on purchasing from foreign adversaries like China, has created a favourable environment for these companies. State lawmakers and local representatives are eager to attract defence tech firms to create jobs and stimulate economic growth.
“America is waking up to the fact that our national security depends on making more stuff in America,” said Senator Jon Husted, Republican of Ohio. He added that places like his state “have a competency in making things.” Mr. Husted, whose father worked at a General Motors factory that later shut down, expressed enthusiasm about Anduril’s Ohio project, highlighting the importance of reviving manufacturing jobs.
Christian Garrett, an investor at venture capital firm 137 Ventures, emphasised the strategic importance of locating factories in industrial towns. “We’re looking at the government and the Pentagon as the end customer,” he said, noting that supporting these companies means bringing valuable jobs to these states.
Despite the advantages, building in former industrial towns presents challenges. Aaron Slodov, CEO of Atomic Industries in Warren, Michigan, cautioned that it takes time and long-term planning. Companies face supply chain complexities and the need for large-scale manufacturing capabilities.
Swarm’s success story offers a compelling case study. Founded by drone enthusiasts and entrepreneurs Kyle Dorosz and Ryan Sigmon, the company initially focused on entertainment drones. The shift to defence technology and the discovery of the vacant factory in Auburn Hills, which Qualcomm had used for making wireless computer chips, proved to be a turning point. The factory’s conversion was facilitated by local welders and workers with experience in building assembly lines.
The Army, Air Force, and Navy now purchase Swarm’s drones, each taking under five minutes to manufacture. The company continues to produce drones for entertainment purposes as well. “We’re just excited to be making this here,” Dorosz said, noting that nearly every employee has a parent or grandparent who worked on an assembly line at one of the nearby auto factories.
This revival of defence manufacturing in industrial towns is not just about economic growth; it’s about reinvigorating communities and leveraging local expertise. As the defence technology sector continues to evolve, the collaboration between startups and industrial towns will play a pivotal role in shaping the future of American manufacturing and national security.