MW Drones spark concerns in New Jersey and beyond: 5 things to know
By Victor Reklaitis
Lobbyists for the drones industry say the furor highlights the 'urgent need for the U.S. to modernize its approach to airspace monitoring and regulation'
Concerns about drones - also called unmanned aerial vehicles or unmanned aerial systems - have grabbed the attention of politicians on the East Coast as well as media outlets.
In reviewing the issues gripping Washington, D.C., this week, the chief U.S. policy strategist at AGF Investments, Greg Valliere, said "everyone in the Northeast" wants to know "what the heck are those drones doing, and who sent them?"
Drone sightings have become a big issue in the past week, but they appear to have started a month ago in New Jersey. Multiple reports of possibly suspicious drone activity were made in that state on Nov. 18, an official with the Federal Bureau of Investigation told reporters over the weekend. Since then, the FBI's Newark office has consulted with other places that have experienced similar sightings, as well as set up a national hotline that has received 5,000 tips, the official said.
The FBI official said that "without doubt" there have been drones flying over New Jersey, but there is not any evidence that indicates "large-scale" activities by unmanned aerial systems, and "modeling is indicative of manned aviation being quite often mistaken for unmanned aviation." A Department of Homeland Security official said the agency understands why people are concerned, and it's "devoting significant resources" to the issue, but it doesn't have any current evidence that there's a threat to public safety.
Here are five things to know about the issue:
1. What concerned leaders are saying
When asked about the drone concerns, President-elect Donald Trump on Monday told reporters that "something strange is going on" and the U.S. government should be more forthcoming with the American people.
"For some reason, they want to keep people in suspense," Trump said. But the incoming Republican president added that he can't imagine that a U.S. enemy is involved, because in that case it would get "blasted out."
New Jersey Democratic Rep. Mikie Sherrill, a former Navy helicopter pilot, said in social-media posts on Monday that she's "frustrated with the lack of answers as we watch drones fly through our skies." She has proposed a five-point plan of action that includes having the federal government improve how it's getting information to the public, as well as having the FBI and DHS deploy specific radar systems and military drones - and having the Biden administration set up a new interagency task force.
Democratic Sen. Richard Blumenthal of Connecticut told CNN on Monday that his "hunch" is that the federal government "knows a lot less than it should." Blumenthal added that lawmakers "have yet to receive the briefing that I've demanded," referring to a letter that he sent Friday to the Federal Aviation Administration and other agencies about reports of drone activity in his home state and other places.
The senators for New Jersey and New York also are among the lawmakers that have requested such a briefing.
2. What skeptics are saying
Former Republican Rep. Adam Kinzinger of Illinois, a former Air Force pilot, is among those playing down the reports of drone sightings and saying it's all about planes taking off and landing at airports.
"Drones exist. This doesn't mean they're Iran, alien, or sniffing out nukes," Kinzinger said in a social-media post on Monday. "All the videos are planes."
In a similar vein, Democratic Sen. Andy Kim of New Jersey wrote over the weekend that "most of the possible drone sightings that were pointed out to me were almost certainly planes." Kim has expressed concerns about the drone sightings, called for more explanations from the federal government, and gone out at night with police to observe what's going on. "I don't discount others may have seen actual drone activity, and not all I saw is fully explained by flight paths, but much of it was," he also said.
3. Key players in the drone industry
Major U.S. defense contractors that make a range of military equipment are among the key players in the drones industry, such as Lockheed Martin Corp. $(LMT)$, Northrop Grumman Corp. $(NOC)$ and Boeing Co. $(BA)$.
Another big player is AeroVironment Inc. $(AVAV)$, which specializes in drones and missiles. AeroVironment's stock was up sharply Monday, with the jump pinned on the denial of a competitor's protest over a $1 billion Army contract.
When it comes to drones for consumers, China-based DJI Technology Inc., a privately held company, has been a dominant player.
From MarketWatch's archives (2017): How DJI has crushed the consumer drone industry
And see (from 2019): Lobbying by giant Chinese drone maker hits record as U.S. lawmakers target its products
4. What lobbyists for drones are saying
The reports of drone activity "highlight the urgent need for the U.S. to modernize its approach to airspace monitoring and regulation," said a Washington lobbying group called the Association for Uncrewed Vehicle Systems International, or AUVSI.
The group's statement also said: "The U.S. government must act now to implement long-overdue regulations for drone operations and invest in modern airspace monitoring systems. These measures will enable all levels of government to distinguish between lawful, beneficial drone activities and those posing risks to public safety or security."
5. The drone industry's size
The market for commercial and recreational drones generated about $34 billion in revenue worldwide last year, and sales will grow to around $55 billion by 2030, according to estimates from market intelligence firm Drone Industry Insights.
Separately, the U.S. Defense Department's 2025 budget for "uncrewed systems" shows spending of $10 billion, according to an analysis from AUVSI, the lobbying group.
-Victor Reklaitis
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
December 16, 2024 15:41 ET (20:41 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments