Inside a cavernous former United Auto Workers training facility on the banks of the Detroit River, a different kind of assembly line is beginning to take shape. Where workers once gathered to refine the craft of making cars, a startup named Birdstop is now laying the groundwork for something less tethered to asphalt.

Michigan, a state synonymous with the automobile for more than a century, is trying to become the drone capital of the United States.

The state has steered over $42 million in public and private investment toward drone-related technology, betting on an industry that is rapidly growing. Market analysts estimate that it will go from under $10 billion in 2025 to over $50 billion by 2033. 

For Birdstop, the decision to relocate its Alabama manufacturing operations and California headquarters to Detroit was as much about space as it was about strategy. The 420,000 square-foot facility offered room to expand, at a fraction of the cost of similar real estate on the West Coast.

In the summer of 2025, Gov. Gretchen Whitmer issued an executive directive establishing the Michigan Advanced Air Mobility Initiative, to scale the state’s capabilities in drone and aerial technology and to integrate those systems across both public and private sectors.

“Michigan has long been a hub of innovation, and with today’s Advanced Air Mobility Initiative, we are building on that proud legacy to lead the future,” Whitmer said. “As the global competition for aviation and autonomous aerial mobility heats up, the United States must use every asset we have to design, test, and build the uncrewed aerial systems (UAS) technologies we will need to strengthen critical supply chains, protect our national security, and reduce our dependence on foreign manufacturing. Michigan can lead the way.”

The directive outlines what officials describe as a “whole-of-government strategy,” bringing together agencies ranging from the Department of Transportation to the Office of Defense and Aerospace Innovation. The goal is not just to attract companies, but to build an ecosystem — one that includes manufacturing, testing infrastructure, workforce development, and regulatory coordination.

“Michigan dreamers, doers, and innovators push the boundaries, invent the future, and grow our economy,” said Lt. Gov. Garlin Gilchrist II. 

At the center of this strategy is the Advanced Aerial Mobility Activation Fund, a state-backed initiative designed to accelerate real-world drone applications. The fund seeks to “create a centralized pipeline of AAM projects that have the potential to validate technical and economic feasibility of key AAM use cases, generate critical data that can be used to inform policy making and accelerate AAM readiness and growth in the state,” according to the Michigan Economic Development Corporation.

Projects are evaluated on feasibility, impact and scalability. Among the priorities: using drones to inspect critical infrastructure, deliver medical supplies, strengthen supply chains and expand access to services in underserved communities.

Since its launch, the fund has already directed millions of dollars into pilot programs. In its second round alone, more than $4.1 million was awarded to four projects spanning health care delivery, automotive logistics and academic research.

One initiative, led by CVS Health, aims to test drone delivery for specialty medications, seeking to make the process faster and more environmentally sustainable. Another, through Traverse Connect, expands the use of drones to transport medical supplies, laboratory samples and equipment across a network of clinics in northern Michigan.

“Traverse Connect and its partners are honored to receive additional funding from the Advanced Air Mobility Activation Fund for expanded use of uncrewed aerial systems for medical supply and sample delivery across Munson Healthcare clinics and facilities,” said Warren Call, president and CEO of Traverse Connect. “Northern Michigan’s emerging aerial mobility hub of public, private, and nonprofit partners is driving innovation and economic opportunity, while developing solutions for local and statewide challenges.”

In metro Detroit, a partnership involving Jack Demmer Automotive Group is exploring how drones might alleviate persistent supply chain bottlenecks by delivering high-demand automotive parts within a 12-mile radius.

The University of Michigan is building out “M-Air,” an expansion of its Mcity public-private partnership, designed to serve as a testbed and incubator for aerial mobility technologies. The project aims not only to support startups, but also to create a pipeline of talent, from K-12 education through graduate research.

“The next frontier of mobility is moving from land to sky, where drones and electric aerial vehicles can transform how we move people and goods,” said Karen Thole, the Robert J. Vlasic Dean of Engineering and a professor of mechanical engineering and aerospace engineering. “Michigan Engineering’s M-Air partnership will play an important role in propelling the state to national leadership in advanced aviation technology and developing the workforce we need to sustain it.”

Justine Johnson, the state’s chief mobility officer, said the shift represents a natural evolution. “Advances in technology and growing demand for advanced aviation solutions across sectors create a timely opportunity for Michigan to lead in Advanced Air Mobility (AAM),” Johnson wrote in the state’s 2025 initiative report. “Building on our long-standing leadership in automotive, manufacturing, and mobility, Michigan is committed to advancing the future of mobility beyond the automobile to unlock new ways of moving people, goods, and information across land, air, and water.” 

Michigan’s push to become the nation’s hub for drone innovation gained new momentum on February 6, 2026, when the U.S. Department of War designated the National All-Domain Warfighting Center, located in northern Michigan, as a premier site for UAS training and testing. 

“Today’s designation of the NADWC as a national test site shows that Michigan can lead the future of aerospace and continues to play a key role in protecting our national defense,” said Governor Whitmer. “Over the last few years, we held an autonomous drone competition, released a statewide Advanced Air Mobility Initiative and secured a new fighter mission at Selfridge Air National Guard Base. Now, thanks to this new national test site, we are building on that momentum, becoming an even more attractive place for cutting-edge defense and aerospace companies to invest in, create good-paying, high-skill local jobs, and grow our economy. You can already see Michigan-made products on roads around the world, and soon, we’ll be in the sky too.”