A transformational $600 million growth opportunity for U.S. drone manufacturer Draganfly (OTCQB:DFLYF | CSE:DFLY | FSE: 3U8)

By Patricia Miller


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The Trump administration is about to ban Chinese firms from supplying to the U.S. government drone market.


A huge opportunity is about to open up in the lucrative U.S. drone market.

The Trump administration is getting ready to ban foreign-made drones from all U.S. government departments.

This presents a massive boost to the remaining American drone manufacturers, chief among these being Draganfly Inc. (OTCQB:DFLYF | CSE:DFLY | FSE: 3U8).

Currently, companies sell close to $600 million of Chinese drone equipment and related services to Uncle Sam each year.

However, growing concerns about data security and Chinese governmental interference have created an environment in which the ‘Made in China’ tag is increasingly unwelcome.

For many years, U.S. officials have argued that Chinese intellectual property theft drains its economy of billions of dollars and thousands of jobs.

Having simmered beneath the surface for so long, these tensions are now reaching a head.

The US-China trade war has permanently altered the trading relationship between the world’s two largest superpowers.

In its first rounds, the trade war centred primarily on tech and job-transfer to Mainland China, but a new front has opened up on national security.

U.S. Secretary of State Mike Pompeo recently described Chinese state-backed technology companies as “Trojan horses for Chinese intelligence”.

The fear is that Chinese civilian firms might covertly gather data on American citizens and infrastructure and provide this back to Chinese security services.

The perceived threat of this is so great that the Federal Government is considering all it can do to protect its citizens’ private information, including a possible ban on Chinese social media apps like the hugely popular TikTok.

The spread of Covid-19 has only intensified the situation, with China being described by the U.S. Department of Homeland security as a “significant threat” to the country’s pandemic response.

In such a climate of suspicion and distrust, it is no wonder that President Trump is preparing his executive order to ban Chinese (let’s be honest) drones from deployment on behalf of the U.S. Government.

As this this goes ahead, Draganfly (OTCQB:DFLYF | CSE:DFLY | FSE: 3U8stands at the front of the queue to reap the benefits from this massive windfall.

READ OUR SPECIAL REPORT – to discover how Draganfly’s I.P. portfolio puts it so far ahead of the U.S. competition

From specialist technology provider to major market opportunity – Draganfly’s (OTCQB:DFLYF | CSE:DFLY | FSE: 3U8) exciting high-growth strategy

Draganfly (OTCQB:DFLYF | CSE:DFLY | FSE: 3U8may have started in 1998 as an innovative commercial drone business, but its move towards data and diagnostics technology could be about to pay off in a BIG way.

While Silicon Valley-backed drone manufacturers tried to compete head-to-head with Chinese companies, Draganfly carved itself out a much better niche.

The company recognized early on that data security would be a particularly important issue for a number of federal agencies, which manage strategically sensitive infrastructure in the United States.

In the first instance, Draganfly originally worked on search and rescue type applications.

The company was so successful at this that it soon attracted the interest of one of the sector’s most preeminent firms.

Through a partnership with the $1.8 billion AeroVironment (NASDAQ:AVAV) – one of America’s largest defence contractors when it comes to drones – Draganfly was able to develop its I.P. Portfolio and work on large government tenders, through contract engineering.

AeroVironment is arguably the world leader in small military UAV systems and has developed the best in-class commercial vertical take-off and horizontal flight drone – the Quantix.

The Quantix is an incredibly powerful system that can map, survey and catalogue vast areas of land.

Because it is a Vertical Take-Off and Land drone, it requires no launcher to operate. That means it can be sent over a target area as easily from a muddy track as from a flat, dry surface. This makes it a highly valuable operational asset.

The Quantix is guided automatically by GPS, so it does not require constant monitoring or specialist technology to set a flight path.

It is extremely user-friendly and has fast become the market leader at this level.

Involvement with this sort of cutting-edge technology could now prove vital to Draganfly’s future chances of success.

Having established its pedigree and track record for delivering on mission-critical, national security drone projects, Draganfly (OTCQB:DFLYF | CSE:DFLY | FSE: 3U8is now perfectly positioned to grow its sales pipeline across other key government departments.

As Chinese firms are forced to withdraw from this part of the market, Draganfly (OTCQB:DFLYF | CSE:DFLY | FSE: 3U8is ready to pounce.

In parallel to its strategy of focussing on top-end technology, the company has also spent a lot of effort recruiting highly connected and influential people to its main board and advisory groups.

Draganfly’s premier board member is Andy Card.

Card is the former Secretary of Transportation and was the second longest-tenured White House Chief of Staff. He served three U.S. Presidents.

They don’t come much better connected than Card. His active support for the company is extremely significant.

Card only sits on two boards (his other seat is with railroad company BNSF Railway), so he is staking a lot on helping to make Draganfly succeed.

With Card’s guidance and strategic-insight into the workings of the Federal Government machine, Draganfly’s CEO Cameron Chell is confident his firm is well placed to fill a large portion of the $600 million supply gap that the Trump executive order is about to create.

“Data security is paramount across government and military departments, so drones that are used in critical areas of infrastructure, border patrol, search and rescue, or any type of survey, mapping or data collection, cannot be susceptible to breaches. It results in a host of buyers more apt to buy products and software built in the U.S.

We’ve built a market-leading I.P. portfolio for drone technology over the last twenty years and our customers know they can trust us to deliver on time, in budget and with total security.”

READ OUR SPECIAL REPORT – to discover how Draganfly’s I.P. portfolio puts it so far ahead of the U.S. competition


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Author: Patricia Miller

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

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