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DJI ban highlights supply chain issues in US drone market

As DJI’s future in the US hangs in the balance, a heated debate is unfolding within the commercial drone industry. Legislative efforts are underway to implement a ban on Chinese-manufactured DJI drones and bolster domestic manufacturers like Skydio and BRINC. However, it has raised deep concerns about the readiness and scalability of American drone makers to meet the market’s demands.

In a candid LinkedIn post, Chris Fink, founder and CEO of Unmanned Vehicle Technologies (UVT), has highlighted significant supply chain issues and potential disruptions that can arise because of the Countering CCP Drones Act as well as the Drones for First Responders Act (DFR Act). UVT has made it its mission to equip American organizations with the most advanced drone and robotic technology.

A key concern for commercial operators like Fink is the scalability of American-made drones compared to their Chinese counterparts. UVT, for instance, ordered two Blue UAS drones from an American manufacturer on January 3, 2024, and did not receive them until May 24, 2024 — a staggering 142-day wait. In contrast, during the same period, UVT ordered and received approximately 270 drones from Chinese manufacturers.

This discrepancy highlights the significant challenge American drone manufacturers face in meeting current demand, let alone an increased demand that might follow if legislation reduces or eliminates competition from Chinese companies like DJI with a blanket ban on their use.

Read: DJI Air 3 drones are 20% off right now

Fink’s concerns are echoed by Dan Amos, CFO at DSLRPros, an organization that provides drone solutions to customers in public safety, industrial inspection, agriculture, mapping, and surveying domains.

Stressing that the entire drone user base could dwindle in the five-plus years it might take for US manufacturers to bring their products to market at scale, Amos emphasized the need for forward momentum in adoption rather than regressive policies that could stifle the market. He argued that while supporting American manufacturers is important, a DJI drone ban could ultimately set US companies up for failure.

“What new technology is going to come out (ahem, from China) that completely disrupts and replaces drones while the market waits for America to catch up,” asks Amos.

John Tressel, a technical support and training specialist with DJI in Europe, reinforced this perspective by sharing his observations on the supply chain issues facing US manufacturers. He noted that even some supporters of the anti-DJI legislation struggle with production times, with average order delivery taking upwards of six months. Tressel warned that without significant production scaling and a major shift in consumer behavior, such legislation could severely impact US-based production capabilities.

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JD D’Arville, a UAS program administrator at the Alabama Department of Transportation, also shared his own frustrating experience, noting that it took him eight months to receive a Skydio X10 drone. The delay clearly underscores the broader issue of supply chain inefficiencies that many in the industry fear will only worsen if the US moves to ban Chinese drones without ensuring that American manufacturers can meet the increased demand.

Mark Palka, a director at the non-profit Project Safe Canada, brought another layer of complexity to the discussion. He pointed out that the high demand for certain drones, such as the DJI Mavic 3 Enterprise Thermal, exacerbates delivery issues. UVT’s Fink then turned to Texas-based Anzu Robotics, a new player in the industry that has licensed Mavic 3 Enterprise technology from DJI to take drone manufacturing out of China.

“A note about Anzu is it’s an entirely new production line in Malaysia and just getting spun up but even then, hundreds of units are already available and thousands more are behind it. That’s a perfect example of why a global supply chain is critical and why even if this legislation were to pass, it wouldn’t immediately bolster the American drone manufacturers. Another entity will pop up in China, and if they can’t, then Malaysia, Taiwan, Japan, and a number of others will capitalize on the US federal government’s lack of ‘putting their money where their mouth is’,” Fink said.

Kyle Nordfors, UAS Chairman for the Mountain Rescue Association (MRA), took a more critical stance on the issue, arguing that the Countering CCP Drones Act and the DFR Act could put lives at risk. He accused those pushing for these policies of prioritizing sales over human life, suggesting that these companies are more focused on financial gain than on supporting first responders who rely on reliable and timely drone technology. MRA is the oldest and largest association of mountain search and rescue teams in the US.

Related: Why this drone dealer opposes DJI ban — and you should too

Fink’s post and the ensuing discussion highlight a critical juncture for the US drone industry. While there is a clear push from some lawmakers to reduce dependence on Chinese technology, the practical implications of such a move are grave. The ability of American manufacturers to scale up production quickly enough to meet market demands remains a significant challenge. Moreover, the potential impact on first responders and other critical users who depend on reliable and timely drone technology cannot be overlooked.

As the US considers these legislative measures, it must carefully weigh the potential benefits of supporting domestic manufacturers against the real-world implications of reduced competition and increased lead times. The drone industry, and those who rely on its technology, stand at a crossroads where policy decisions could have far-reaching consequences. Ensuring that American manufacturers are adequately supported and capable of scaling up to meet demand is crucial for any legislative action to be effective and beneficial in the long term.

Read more: Epic discount deal knocks $120 off Mini 3 (DJI RC) drone

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Avatar for Ishveena Singh Ishveena Singh

Ishveena Singh is a versatile journalist and writer with a passion for drones and location technologies. She has been named as one of the 50 Rising Stars of the geospatial industry for the year 2021 by Geospatial World magazine.


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