Top Ten 2026 Trends for Drones & Unmanned Aerial Systems

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As 2026 approaches, the United States is on the cusp of a significant transformation in the use of drones and unmanned aerial systems (UAS). Propelled by regulatory advancements, technological maturation, and growing acceptance across industries, the coming year is poised to unlock new capabilities and widespread adoption. Here are the top ten trends shaping the drone landscape in the U.S. for 2026, based on current projections and expert analysis.

1. Mainstreaming of Beyond Visual Line of Sight (BVLOS) Operations

A pivotal development anticipated by 2026 is the widespread implementation of Beyond Visual Line of Sight (BVLOS) drone operations. The Federal Aviation Administration (FAA) is expected to finalize its Part 108 regulations, creating a standardized framework for routine BVLOS flights. This will be a game-changer, moving away from the current case-by-case waiver system and enabling more complex and scalable drone applications, such as long-distance inspections of pipelines and power lines, and expanded delivery services.

2. The Rise of “Drone-as-a-Service” (DaaS)

The Drone-as-a-Service (DaaS) model is projected to see substantial growth. This business model allows companies to outsource their drone needs—including equipment, pilots, data processing, and regulatory compliance—making sophisticated aerial capabilities accessible without the high upfront investment. The DaaS market is forecast to reach $27.3 billion by 2033, with a compound annual growth rate (CAGR) of 18.1% from 2026 to 2033. Industries like agriculture, construction, and environmental management are increasingly leveraging DaaS for enhanced efficiency.

3. Accelerated Adoption of Automated Drone Delivery

With clearer regulations for BVLOS operations, drone delivery services for packages, food, and medical supplies are set to become more common in suburban and rural areas. The global drone package delivery market is projected to reach nearly $6.8 billion by 2026, with North America being a dominant market. Companies like Wing and Zipline are expected to expand their operations significantly.

Reference: Market research from Facts and Factors projects the global drone package delivery market to hit $6.8 billion by the end of 2026.

4. Advanced AI and Machine Learning Integration

By 2026, artificial intelligence and machine learning will be central to drone operations, enabling a higher degree of autonomy. AI-powered systems will enhance navigation, object detection and avoidance, and data analysis. This will lead to more intelligent and efficient drones capable of performing complex tasks like precision agriculture, autonomous infrastructure inspections, and even participating in search and rescue missions with minimal human intervention.

5. Growth of the Counter-UAS (C-UAS) Market

The proliferation of drones will be met with a corresponding rise in the demand for counter-drone technologies. The global counter-UAV market is projected to reach over $2 billion by 2026. This growth is driven by the need to protect critical infrastructure, public venues, and military installations from unauthorized or malicious drone activity. Advancements in C-UAS will include more sophisticated detection systems, such as radar and RF scanners, and a variety of mitigation techniques.

Reference: A forecast by Facts and Factors estimates the global counter-UAV market will reach $2 billion by 2026, with North America being a key market due to significant DoD investment.

6. Specialization of Drones for Industrial Applications

The one-size-fits-all approach to drones is fading. By 2026, there will be a greater emphasis on specialized drones designed for specific industrial tasks. This includes agricultural drones with advanced multispectral sensors for crop health analysis, construction drones with high-resolution cameras and LiDAR for site surveying and progress monitoring, and energy sector drones equipped for safe and efficient inspection of wind turbines and power lines.

7. Expansion of Public Sector and Law Enforcement Use

Government agencies at the federal, state, and local levels will continue to expand their use of drones. In 2026, UAS will be integral to public safety for applications like situational awareness during emergencies, search and rescue operations, and accident reconstruction. They will also be increasingly used for infrastructure inspection and environmental monitoring.

8. Advancements in Sensor and Payload Technology

The capabilities of drones are largely defined by their payloads. In 2026, we can expect to see more advanced and miniaturized sensors being integrated into drone platforms. This includes lighter and more powerful LiDAR systems for creating detailed 3D maps, hyperspectral sensors for environmental analysis, and more sophisticated thermal imaging cameras for a variety of applications.

9. Increased Focus on Data Security and Management

As drones become key tools for collecting vast amounts of data, ensuring the security and proper management of that information will be a top priority. By 2026, there will be a greater emphasis on secure data transmission, encrypted storage, and robust data management platforms to handle the influx of aerial imagery and sensor data, particularly in sensitive sectors like critical infrastructure and defense.

10. Maturation of Unmanned Traffic Management (UTM) Systems

To safely manage the growing number of drones in the airspace, the development and implementation of Unmanned Traffic Management (UTM) systems will be a key focus. By 2026, we will see more mature UTM platforms that can provide services such as airspace design, dynamic geofencing, severe weather and wind avoidance, and conflict avoidance between drones and other aircraft. These systems will be crucial for enabling the high-density drone operations of the future.

About the Author: Daniel Stiel graduated from the University of Southern California School of Business and earned the FAA Part 107 Certified Drone Pilot in 2020. Dan currently teaches Commercial Photography and Drone Imaging at the College of the Desert in Southern California.

The Looming Ban on DJI Drones in the United States

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Last week, the largest “Unmanned Aerial Systems” trade show in the United States took place in Las Vegas. A hot topic at the conference was the legislation which could take effect later this year that will effectively ban the sale of new DJI drones in the U.S., and the impact on commercial, enterprise, public sector, government agencies, and even recreational drone users.

As of September 7, 2025, there is no official, full-scale ban on DJI drones in the United States. However, the situation is dynamic, with legislation on the verge of taking effect that could severely restrict the sale and use of new DJI products.

The Looming Deadline: December 23, 2025

The most significant development is a provision in the Fiscal Year 2025 National Defense Authorization Act (NDAA), passed in late 2024. This legislation requires a U.S. national security agency to conduct a formal security review of DJI’s products by December 23, 2025.

If this audit is not completed by the deadline, a ban will be automatically triggered. Specifically, DJI would be added to the Federal Communications Commission’s (FCC) “Covered List,” which would effectively prohibit the sale and importation of new DJI drones in the U.S.

As of July 2025, no audit has been scheduled, leading to significant uncertainty for the drone industry and consumers.

In this podcast, Amanda and Kevin debate the “pros” and “cons” of a ban of DJI drones in the United States.

What Products are Impacted?

While a full ban is not yet in place, the potential restrictions would primarily impact the import and sale of new DJI products. This would include popular consumer and enterprise models across their product lines, such as:

  • Consumer Drones: DJI’s Mavic, Air, Mini, and FPV series.
  • Enterprise Drones: The Matrice series, designed for commercial and industrial applications.
  • Other Products: The ban could also extend to other DJI equipment, such as their camera gimbals, accessories, and possibly even parts.

It is important to note that a potential ban would not make existing DJI drones illegal to own or operate. However, it could lead to complications. For instance, future firmware updates, official support, and warranty claims might be at risk.10 The scarcity of new drones has already made it difficult for consumers and businesses to acquire DJI products, leading to a rise in the second-hand market and concerns about future parts availability.

Who is Impacted?

A ban on new DJI products would have a wide-ranging impact across various sectors in the U.S. due to the company’s dominant market share. DJI reportedly accounts for a large majority of the commercial and consumer drone market in the United States.

1. Commercial Businesses:

A ban would be a major blow to countless commercial businesses that have built their operations around DJI’s reliable and cost-effective technology. This includes:

  • Real Estate and Photography: Businesses that rely on high-quality aerial photography and videography for marketing and documentation.
  • Construction and Surveying: Companies using drones for site mapping, progress tracking, and infrastructure inspections.
  • Agriculture: Farmers and agricultural service providers who use drones for crop monitoring, surveying, and precision spraying.
  • Filmmaking: The film and television industry, which frequently uses DJI drones for professional-grade aerial shots.

2. Government and Public Safety Sectors:

Despite a number of existing federal restrictions on Chinese-made drones for government use, a significant number of state and local public safety agencies still rely on DJI drones. A rapid ban could create major operational challenges for:

  • Law Enforcement: Police departments that use drones for search and rescue operations, accident reconstruction, and surveillance.
  • Fire Departments: Firefighters who use drones to assess wildfire spread, locate hot spots, and monitor emergency situations from the air.
  • Public Utilities: Agencies that use drones to inspect critical infrastructure like power lines, bridges, and pipelines.

3. Consumers and Hobbyists:

The largest user group impacted would be individual consumers and hobbyists who use DJI drones for recreational purposes. The potential ban on new sales and lack of official support could limit access to new technology and make it harder to maintain existing drones.

Conclusion:

The legislative efforts to ban DJI, driven by national security and data privacy concerns, have highlighted the U.S.’s heavy reliance on a foreign-manufactured technology. While domestic drone manufacturers exist, they often do not offer the same level of performance or competitive pricing, making a smooth transition difficult for many users and businesses.

The outcome of the December 23 deadline will determine the future landscape of the U.S. drone industry.

The Business Case for Palmer Luckey (Anduril Industries) to Develop Consumer and Commercial Drones for the US Market

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Executive Summary

The U.S. drone market is experiencing a significant and accelerating shift. Geopolitical tensions and national security concerns have created a substantial opportunity for a U.S.-based company to displace DJI, a Chinese manufacturer, which currently holds a dominant position in the consumer and commercial drone markets.

This business case proposes that Palmer Luckey, through Anduril Industries, leverage his expertise in defense technology and artificial intelligence to design and produce a new line of drones for the American market.

This initiative would capitalize on a receptive market, favorable regulatory environment, and a growing demand for secure, American-made technology.

…Daniel Stiel

1. The Problem: A Critical Gap in the U.S. Drone Market

  • DJI’s Dominance and National Security Risk: DJI, a Chinese company, commands a significant share of the global and U.S. drone market, particularly in the consumer and commercial sectors. Sources indicate DJI’s market share is over 70% worldwide, and in the U.S. commercial market, it may be as high as 90%. This dominance raises national security concerns due to the potential for data exfiltration and foreign influence. The U.S. government has already taken steps to restrict or ban the use of DJI drones by federal agencies, creating a vacuum in the market.
  • Lack of a Domestic Alternative: There is a critical shortage of American-made, consumer-friendly, and commercially viable drones that can compete with DJI on price, features, and ease of use. While there are a handful of domestic manufacturers, none have achieved the widespread market penetration and brand recognition necessary to serve as a true replacement for DJI.

2. The Opportunity: A Market Ripe for Disruption

  • Growing Market Size: The U.S. drone market is projected to grow significantly. The U.S. drone market was valued at around $10.8 billion in 2024 and is projected to reach over $29 billion by 2034, with a Compound Annual Growth Rate (CAGR) of over 10%. This growth is driven by expanding applications in agriculture, logistics, media, public safety, and infrastructure inspection.
  • Favorable Regulatory and Political Climate: The U.S. government has expressed a clear preference for domestically produced drone technology. Regulations and policies are increasingly favoring secure, American-made solutions. A “Made in America” product with a secure software and hardware stack would be highly attractive to government agencies, public safety organizations, and private enterprises with sensitive data.
  • Demand for Secure Technology: Beyond government contracts, a significant portion of the private sector, including utility companies, large-scale agricultural operations, and media organizations, is becoming increasingly wary of using technology from foreign adversaries. A secure, U.S.-based alternative would be a competitive differentiator.

3. The Solution: Anduril’s Competitive Advantage

Palmer Luckey, as the founder of Anduril Industries, is uniquely positioned to address this market need.

  • Proven Expertise in AI and Defense Technology: Anduril has successfully developed advanced autonomous systems for the defense sector, including drones and counter-drone technology. The company’s core platform, Lattice, which fuses data from various sensors and uses AI to execute missions, is a direct application of the technology required for next-generation commercial drones.
  • A “Product-First” Business Model: Palmer’s philosophy of developing a working product first and then seeking to deploy it (rather than relying on traditional, slow defense contracting) is perfectly suited for the fast-paced consumer and commercial markets. This approach would allow for rapid product development and iteration, giving a new venture a significant speed-to-market advantage.
  • Financial Resources and Network: With his track record at Oculus VR and Anduril, Palmer has the financial backing and industry connections to attract top talent and secure the necessary capital to scale production and marketing for a mass-market product.

4. Proposed Product Lines

A new drone venture could initially focus on two key market segments:

  • Commercial/Enterprise Drones: A line of secure, professional-grade drones with advanced features for specific industries.
    • Public Safety: Drones for law enforcement and fire departments for search and rescue, surveillance, and incident response. These would feature secure data transmission and integration with existing public safety platforms.
    • Infrastructure: Drones for inspecting power lines, pipelines, and bridges, with high-resolution cameras, thermal imaging, and autonomous flight paths.
    • Agriculture: Drones for crop monitoring, surveying, and spraying.
  • Prosumer/Hobbyist Drones: A line of high-quality, user-friendly drones for enthusiasts and content creators.
    • High-End Photography/Videography: Drones with superior camera sensors and a focus on image quality to appeal to professional videographers.
    • Advanced Features: Leverage Anduril’s AI expertise for features like enhanced obstacle avoidance, more stable flight, and intelligent tracking modes that outperform the competition.

5. Call to Action

This is not just a business opportunity, but a strategic imperative for American technology. By entering the U.S. drone market, Anduril can:

  • Create a Secure Domestic Supply Chain: Reduce America’s reliance on foreign-made technology and foster a new ecosystem of U.S. drone manufacturers and component suppliers.
  • Establish a New Standard for Drone Security: Build drones with security as a core feature, offering peace of mind to commercial and government customers.
  • Drive Innovation: Apply cutting-edge AI and autonomy developed for the defense sector to the commercial market, accelerating technological progress and creating high-paying jobs in the U.S.

The time is now for Palmer Luckey and Anduril to fill the void left by a Chinese market leader and establish a secure, innovative, and American-led future for the U.S. drone industry.

About the Author

Daniel Stiel has been involved in the drone/UAS industry and has held the FAA’s Part 107 Commercial Drone Certification since 2020. For more information, visit Dan Stiel on LinkedIn.

Sources

DroneLife. “DJI Drones Face Unprecedented Scarcity in U.S. Consumer Market.” June 25, 2025. Available at: https://dronelife.com/2025/06/25/dji-drones-us-consumer-market-scarcity-security/

UAV Coach. “The Complete DJI Ban Guide [Updated for 2025].” July 9, 2025. Available at: https://uavcoach.com/dji-ban/

Market.us. “U.S. Drone Market Size is Expected to Reach Around USD 29,233.5 Million By 2034.” May 15, 2025. Available at: https://www.globenewswire.com/news-release/2025/05/15/3082155/0/en/North-America-Drone-Market-Size-Expected-Reach-31-Billion-By-2034-as-Revenue-Opportunities-Jump.html

Anduril Industries. “Our Technology.” Available at: https://www.anduril.com/mission/

Ghost is an expeditionary, quiet, and modular UAS platform that delivers intuitive autonomy at the tactical edge, balancing extended range and multi-payload capacity with an expeditionary footprint.

TSMC: Challenges building a Greenfield Project in Arizona

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Building the Taiwan Semiconductor Manufacturing Company (TSMC) factory in Arizona has been a complex undertaking marked by both significant successes and notable failures and challenges. The project, which started with a $12 billion investment and has since expanded to a monumental $165 billion, represents the largest foreign direct investment in a greenfield project in U.S. history.

Successes

The project has achieved several key milestones and successes, most recently turning a profit and demonstrating strong operational performance.

  • Financial Performance: The Arizona facility achieved profitability in the first half of 2025, a significant turnaround from previous losses. This was attributed to high factory utilization and strong market demand, particularly for chips used in AI applications. The facility is a major contributor to TSMC’s overall earnings, demonstrating that the U.S. manufacturing site is a viable part of the company’s global strategy.
  • High Yield Rates: The TSMC Arizona factory has achieved a remarkable milestone by surpassing the yield rates of its counterpart facilities in Taiwan. Yield rates, which measure the percentage of functional chips produced per wafer, are critical for efficiency and profitability in the semiconductor industry. This success proves that TSMC has successfully adapted its advanced manufacturing techniques to a U.S. environment.
  • Economic Impact and Job Creation: The project has had a transformative effect on the Phoenix area and the broader U.S. economy. It has led to the creation of over 40,000 construction jobs and thousands of high-paying, high-tech jobs. The investment has also spurred growth in supporting industries like real estate, healthcare, and retail, and is contributing to the development of a new high-tech workforce in Arizona.

This video provides an insider’s perspective on the cultural challenges and cross-cultural communication that TSMC is navigating with its American workforce.

Failures and Challenges

Despite its successes, the project has been plagued by delays, logistical hurdles, and cultural clashes.

  • Construction Delays and Cost Overruns: The initial production timeline for the first fab was pushed from late 2024 to 2025. Similarly, the second fab’s timeline was delayed from 2026 to at least 2027 or 2028. These delays have been attributed to several factors, including a shortage of skilled labor, unexpected costs, and supply chain issues. TSMC’s founder, Morris Chang, has warned that production costs in Arizona could be significantly higher than in Taiwan.
  • Labor Disputes and Shortages: A major challenge has been the shortage of skilled workers in the U.S. with the specialized expertise required for advanced semiconductor manufacturing. This has led TSMC to seek visas for hundreds of Taiwanese technicians, which sparked controversy and criticism from local labor unions. While an agreement was eventually reached, the issue highlighted a key challenge in “reshoring” advanced manufacturing to the U.S.
  • Cultural and Logistical Hurdles: Reports from both sides indicate significant cultural differences in work practices. American engineers have complained about rigid hierarchies, while some Taiwanese veterans have expressed concerns about what they perceive as a lack of dedication from their American counterparts. Logistical issues, such as constantly changing blueprints and project plans, have also contributed to delays and increased costs.

Sources

The Worst States in America to Operate a Traditional Shopping Mall

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Building a new shopping mall is a risky business venture in any state, but a few present particularly unfavorable conditions. Key factors contributing to a poor environment for malls include declining population, a weakening retail sector, and an unfavorable business climate.

Retail and Economic Trends

The national retail landscape is undergoing a massive shift, with traditional brick-and-mortar stores facing intense competition from e-commerce. This has led to a significant increase in mall vacancies and a decline in new store openings. The number of U.S. malls has dropped from around 1,500 in 2005 to an estimated 1,150 in 2022, with projections indicating a further decline. The national retail vacancy rate in shopping centers rose to 5.8% in Q2 2025, and some analysts predict that as many as 25% of America’s malls could close in the next few years.

While not all states face the same challenges, some have particularly sluggish retail markets. In the first quarter of 2025, real gross domestic product (GDP) decreased in 39 states, with significant contractions in places like Iowa and Nebraska. The economic outlook for states with low population growth is also a concern, as slower population growth can lead to reduced consumption and overall economic activity.

Unfavorable Business Climates

Beyond demographics and retail trends, the overall business climate of a state plays a significant role in determining the success of a new venture. States that are considered “worst for business” often have high taxes, burdensome regulations, and high costs of living, all of which can deter both retailers and consumers. According to one study,

Alaska was ranked as the worst state for business, with Hawaii, Montana, Rhode Island, and Louisiana also ranking in the bottom ten. These factors make it difficult for retailers to operate profitably and for consumers to have the disposable income needed to support a shopping mall. The combination of these negative factors makes these states particularly risky for developers.

Here is a video about the future of American retail.

America’s Retail in Crisis: 10 States Lose Out After Amazon’s Supply Chain Shift

This video discusses how the rise of e-commerce, exemplified by Amazon, is affecting retail in various states across the U.S. and impacting local communities.

Here are the sources for the statistics and projections used in the report:

Retail and Economic Projections

  • The number of U.S. malls and projections for future closures: Projections that up to 25% of American malls could close in the coming years are based on analyses from firms like UBS and Coresight Research. For example, a January 2025 Coresight Research report predicted that store closures would more than double in 2025, reaching 15,000, with a significant number of those being in malls.
  • National retail vacancy rate: The 5.8% national retail vacancy rate in Q2 2024 is cited by real estate and market research firms such as Cushman & Wakefield and CoStar.
  • States with declining GDP: The information that real GDP decreased in 39 states in Q1 2024, and that states like Iowa and Nebraska saw significant contractions, comes directly from the U.S. Bureau of Economic Analysis (BEA).

Unfavorable Business Climates

  • “Worst states for business” rankings: These rankings are compiled annually by various sources, including CNBC, Forbes, and the Tax Foundation. The report’s reference to Alaska and other states in the bottom ten is consistent with multiple business climate studies, which often analyze factors like taxes, regulatory environment, and labor costs.

Is the American Express Bluebird prepaid card being discontinued?

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I once considered the AMEX Bluebird prepaid card one of the best in the industry from a consumer value and financial utility perspective. So while the news American Express was discontinuing the program didn’t surprise me, it does make me wonder if the prepaid space is simply overcrowded.

The following information was compiled from a variety of news sources. While the Bluebird website makes no mention of the program discontinuing, check the issuer for the latest updates and changes.

Key details about the Bluebird program’s history:

  • Original creation (2012): American Express and Walmart launched Bluebird as a low-cost alternative to traditional bank checking accounts.
  • Program manager sold (2017): InComm, which already handled retail activation for Amex prepaid cards, bought the Serve technology platform and became the program manager and processor for Bluebird and other Amex prepaid cards. American Express remained the card issuer.
  • Program shut down (2025–2026): In May 2025, American Express announced it was discontinuing its Bluebird and Serve prepaid cards. All remaining accounts will be closed by June 3, 2026. 

What’s Happening with Bluebird?

  • American Express is discontinuing the Bluebird (and Serve) prepaid debit programs. All remaining Bluebird and Serve accounts will officially close on June 3, 2026
  • Key cutoff dates:
    • February 24, 2026 – Last day to use bill pay functionality
    • May 5, 2026 – Final day to add funds to your account
    • June 3, 2026 – All Bluebird and Serve accounts will be closed
  • Amex is no longer accepting new applicants for Bluebird cards according to news reports, albeit the Bluebird website makes no mention of the pending closure.
  • Over the past year, several features have already been phased out, including:
    • Amex Offers, check-writing, savings Goals, and sub-accounts

Effectively, the Bluebird card is winding down and will be completely discontinued by mid-2026.

What You Should Do (If You Still Have an Active Bluebird Card)

  1. Stop adding funds after May 5, 2026.
  2. Use bill pay before February 24, 2026.
  3. By the June 3 closure, withdraw or use any remaining funds.
    • Funds above $9.99 will be returned via check.
    • Balances $9.99 or less will be refunded as an Amex e-Gift Card 

Why This Is Happening

  • Bluebird and Serve were initially designed as low-fee, accessible alternatives to traditional banking, often used by underbanked customers and travel-reward enthusiasts
  • Over time, manufactured-spending concerns, shrinking margins, and Amex’s shift toward premium customers made these programs less viable 
  • Fintech alternatives—like Chime, SoFi, Cash App, Venmo, or PayPal (offering debit cards tied to app balances)—have surpassed Bluebird in features and convenience 

Summary Table

Feature or StatusCurrent State / Key Date
New applicationsNo longer accepted
Bill pay functionalityAvailable until Feb 24, 2026
Ability to add fundsUntil May 5, 2026
Account accessEnds June 3, 2026
Feature deactivationsAmex Offers, checks, Goals, sub-accounts already removed

Bottom Line

The Bluebird program is reportedly being phased out. If you’re an existing cardholder, verify your account status and start planning to move funds and complete bill payments well before the mid-2026 deadlines. If you don’t already have one, you can’t sign up for Bluebird anymore, and all accounts will be deactivated by June 3, 2026.

Here are the sources reporting on the status of the American Express Bluebird card:

Intel: Why Governments take Stakes in Private Companies

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Governments worldwide have a long history of holding stakes in private companies, often for strategic or economic reasons.

In the United States, this practice is not new. A notable example is the government’s intervention during the 2008 financial crisis, which included a large stake in General Motors. More recently, the U.S. government announced it has acquired a 10% stake in semiconductor giant Intel.

In a highly unusual move, the U.S. government has announced a deal to acquire a 9.9% equity stake in Intel, making it one of the company’s largest shareholders. The investment, valued at $8.9 billion, is being funded by converting previously allocated grants to Intel under the CHIPS and Science Act and an additional $3.2 billion from the Secure Enclave program. The deal, which comes after President Trump called for Intel’s CEO to resign, is aimed at boosting domestic semiconductor production and reducing reliance on foreign manufacturing. Intel’s stock saw a notable surge following the announcement.

The financial performance of government-owned companies varies greatly. Studies have shown that some state-owned enterprises (SOEs) may be less profitable than their private counterparts, potentially due to political influence and a focus on social objectives over profit maximization.

However, government ownership can also provide stability and access to capital, particularly for industries deemed critical for national security or economic stability. This dual role—as both a shareholder seeking returns and a policymaker with broader goals—creates a complex dynamic for these companies’ financial performance.

Photo by Andrea Piacquadio

Meet Dan Stiel and Nevo Financial

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In the complex world of product development and marketing, project management, branding, marketing, finding a partner with both deep industry expertise and a forward-thinking approach can be a challenge. That’s where Dan Stiel and his company, Nevo Financial, come in.

Corporate Leadership

Dan’s background is a unique blend of corporate leadership and entrepreneurial spirit.

Dan Stiel spent over four decades in high-level positions at major financial institutions like Bank of America, First Interstate Bancorp, Visa, Tosco/Circle K, and many others. His work included marketing, product development, and leadership roles where he was a key part of teams that developed and launched “game-changing” innovations. This includes being a marketing and/or product lead for the original launch of the Interlink POS and Cirrus ATM networks, as well as being first to market with Visa Debit Cards and developing various co-brand and private-label credit cards. His corporate history demonstrates an ability to succeed within established, large-scale business environments and drive success on significant projects.

Nevo Financial’s mission is to offer clients the benefit of Dan’s extensive experience and innovative thinking, helping them navigate the ever-changing landscape of AI, automated aerial systems, robotics, financial services and retail payments. They are a valuable resource for businesses seeking expert advice and strategic direction in a rapidly evolving market.

For more information, visit Dan’s LinkedIn Profile, then call Dan personally at (512) 887-8435.

PPI Forecast for the next 12 months

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Several organizations and analysts have published forecasts for the Producer Price Index (PPI) in the United States for the next 12 months (roughly August 2025 to July 2026). Here’s our take ahead of the Jackson Hole Economic Policy Symposium to be held Aug. 21-23. This year’s theme is “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy” should be pivotal in where we head going into 2026.

Current context

  • The Producer Price Index (PPI) for final demand in July 2025 increased by 0.9% month-over-month (seasonally adjusted).
  • On an unadjusted basis, the final demand PPI was up 3.3% for the 12 months ending in July 2025, which was the largest 12-month increase since February 2025.
  • The rise in service prices (1.1%) accounted for most of the July increase, according to Reuters.
  • Core PPI (excluding food and energy) advanced 0.6% in July. 

Forecasts for the next 12 months

  • Trading Economics forecasts the United States Producer Prices Change to be 3.00% by the end of the current quarter (ending September 2025). In the long-term, they project it to trend around 2.80% in 2026 and 2.70% in 2027.
  • Trading Economics also predicts that the core Producer Price Index (Final Demand Less Foods and Energy) year-over-year change will be 3.20% by the end of the current quarter. Their long-term projection for this figure is around 3.10% in 2026 and 2.90% in 2027.
  • In August 2025, it was noted that US producer inflation was expected to pick up slightly. Headline producer inflation was forecast to accelerate to 2.5% year-on-year in July (up from 2.3% in June) and core producer inflation was expected to pick up to 2.9% year-on-year (up from 2.6% in June). 

Factors influencing the PPI

  • Tariffs and Trade Tensions: Ongoing tariffs and trade tensions are considered significant factors driving up costs throughout the supply chain.
  • Supply Chain Disruptions: Broader economic challenges like supply chain disruptions also contribute to inflationary pressures.
  • Monetary Policy: The unexpected surge in producer prices could impact the Federal Reserve’s policy decisions, including potential interest rate adjustments.
  • Passing on Costs: Businesses may pass on increased costs to consumers, potentially leading to future hikes in consumer prices. 

Important considerations

  • Forecasting PPI can be challenging due to various factors like political climates and global events.
  • It’s important to keep an eye on trends rather than solely focusing on precise predictions.
  • Upcoming data releases, such as the Consumer Price Index (CPI), will be crucial for further insights into inflation trends. 
Photo by maitree rimthong on Pexels.com

Key Provisions of the FAA Part 108 Proposal

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The proposed FAA Part 108 rule seeks to create a predictable and scalable framework for Beyond Visual Line of Sight (BVLOS) drone operations, which are currently handled on a case-by-case basis through waivers. This new rule aims to enhance safety, efficiency, and scalability for a wide range of drone applications, including package delivery, agriculture, and infrastructure inspection.

The following is our analysis of the key provisions, based on extensive review of the FAA’s NPRM, interviews with subject matter experts, and published research.

The following is our analysis of the key provisions of the FAA’s proposed Part 108 rules

  • Abolishes individual waivers: The rule creates a standardized, repeatable pathway for routine BVLOS operations, eliminating the need for individual waivers and exemptions.
  • Two operational tracks: It establishes a two-tiered system for authorization:
    • Permits for lower-risk operations (e.g., small drones, limited fleet size, specific purposes like surveying or training).
    • Certificates for higher-risk or larger-scale operations (e.g., fleets of heavier aircraft).
  • Performance-based requirements: The rule focuses on performance outcomes rather than prescriptive design details. This allows for innovation and faster market entry for new drone models while maintaining safety.
  • Higher weight limits: The rule proposes new weight categories for unmanned aircraft, including up to 55 pounds, 110 pounds, and 1,320 pounds, depending on the operation type and authorization.
  • Emphasis on security: It includes new requirements for both physical and cybersecurity, such as limiting access to launch sites and implementing policies to protect networks and data.
  • New job roles: The proposal introduces new job roles like “Operations Supervisor” and “Flight Coordinator,” who would be responsible for the overall safety of drone operations. This shifts the focus from a single pilot to organizational responsibility.
  • Operational limitations: Manufacturers would be responsible for establishing the operational limits of their drones (e.g., speed, weather tolerance), and operators would be required to stay within those limits.
  • Detect and Avoid (DAA) capabilities: Drones operating in Class B or C airspace would need an onboard system to detect and avoid other aircraft. The rule also introduces the concept of Automated Data Service Providers (ADSPs) to help manage traffic and collision avoidance.
  • Crew rest requirements: Similar to manned aviation, the rule proposes limits on flight crew duty time, including a maximum of 14-hour shifts and a mandatory 10-hour rest period between shifts.
  • Operations over people: The rule would allow operations over people but with restrictions, especially for large, open-air gatherings like concerts or sporting events. It proposes five categories of operations over people based on population density, each with its own set of restrictions.
  • Airspace integration: The proposal outlines procedures for UAS to operate within the existing airspace structure, reducing conflicts with manned aircraft.
  • No new pilot certificate: The rule does not require a new pilot certificate for these operations. Instead, it relies on organizational training and the new designated roles.
  • Operational approval: Operators would need to secure FAA approval for their intended flight areas, specifying boundaries and takeoff/landing zones.
  • Data logging and recordkeeping: The rule would require operators to maintain significant records, including maintenance, personnel training, and flight data, which must be made available for inspection.
  • Remote ID and lighting: Drones operating under Part 108 would be required to have lighting and to broadcast Remote ID.

New FAA Drone Rules – Part 108 Explained
The following video narrated by Pilot Institute’s Greg Reverdiau is relevant because it provides a detailed breakdown and explanation of the proposed FAA Part 108 rules for drone operations:

Proposed changes to Operations over People

The proposed FAA Part 108 rule introduces specific changes to how drones can be operated over people, moving away from the previous restrictions under Part 107. The goal is to enable more complex and scalable drone operations while maintaining public safety.

Here are the details of the proposed changes to operations over people:

  • Five Categories of Operations: The rule establishes five distinct categories of operations over people, which are based on population density. The level of restriction and the requirements for the operator will vary depending on the category.
  • Prohibition on Large Gatherings: While the rule allows for operations over people, it specifically prohibits operations over large, open-air gatherings like concerts, sporting events, or crowded parks.
  • Operational Restrictions: Each of the five categories will have its own set of operational restrictions. For instance, newsgathering operations will be limited to “Category 3” population density and above, which means they would be restricted from flying in heavily populated areas of smaller towns.
  • Focus on Public Safety: The overarching principle is to balance the need for innovative services with public safety. The rule aims to mitigate risk by defining a structured framework for when and where drones can fly over people.
  • Beyond Visual Line of Sight (BVLOS): This rule is a key part of the larger effort to enable BVLOS operations, which are essential for applications like package delivery and urban air mobility. Allowing operations over people is a crucial step for these services to become viable.

These changes are designed to provide a clear and predictable pathway for drone operators, reducing the reliance on case-by-case waivers and enabling a wider range of commercial applications.

The five categories of operations over people

The proposed FAA Part 108 rule introduces a new framework for operations over people, which is a key part of enabling large-scale, Beyond Visual Line of Sight (BVLOS) operations. The rule establishes five categories of operations over people based on population density, with each category having specific requirements.

  • Category 1: The most sparsely populated areas, defined as being farther than 1 statute mile from any cell with a population of 10 people or higher. This category is intended for operations in rural or uninhabited areas.
  • Category 2: Areas with a low population density, often characterized by scattered buildings or small, rural communities. Operations in this category would have fewer restrictions compared to more populated areas.
  • Category 3: Areas of moderate population, such as residential developments and single-family homes. This category would be a common setting for many commercial drone applications, like package delivery. The proposal mentions that newsgathering operations would be limited to this category and above, meaning they would not be allowed in more densely populated areas of small towns.
  • Category 4: Densely populated areas, such as suburban neighborhoods with a mix of residential and commercial properties. Operations in this category would require more rigorous safety measures and a higher level of FAA oversight.
  • Category 5: The most densely populated areas, typically found in urban environments and city centers. This category would have the most stringent requirements, reflecting the increased risk to people and property.

In addition to these five categories, the proposal also maintains the existing prohibition on operations over large, open-air gatherings like concerts, sporting events, or crowded parks, regardless of the population density of the surrounding area.

References

Based on the information gathered, the FAA Part 108 proposal is a Notice of Proposed Rulemaking (NPRM) that was officially released by the FAA. This is the primary source document. Our analysis is a synthesis of the NPRM’s key provisions, as broken down by various news and industry publications.

Here is a list of the references used to prepare these talking points and material:

  • Primary Source:
    • Federal Aviation Administration (FAA): The official “Notice of Proposed Rulemaking (NPRM): Normalizing Unmanned Aircraft Systems Beyond Visual Line of Sight Operations” is the foundational document. It outlines the proposed new rule, its rationale, and its specific provisions.
  • Secondary Sources (Summaries and Analyses):
    • Commercial UAV News: This publication provided a breakdown of the NPRM, including details about the TSA’s involvement, security requirements, and the purpose of the new rule.
    • Pillsbury Law: Their analysis provided a clear summary of the operational permits and certificates, the proposed weight limits, and the five categories for operations over people based on population density.
    • DroneLife: An article from this publication broke down the key talking points of the NPRM, including the new job roles (Operations Supervisor and Flight Coordinator), the shift to performance-based requirements, and the emphasis on manufacturer-defined operational limits.
    • Vertical Aviation International: Their summary highlighted the rule’s role in advancing the integration of UAS into the National Airspace System and its impact on various sectors.
    • Advexure: Their article provided context on the need for Part 108 and its origins in the BVLOS Aviation Rulemaking Committee (ARC) report.
    • FAA Fact Sheet: The official fact sheet from the FAA newsroom provides a high-level overview of the proposed rule, including its key provisions for enabling BVLOS operations and its approach to operations over people.

These sources collectively provided the comprehensive details and key talking points that were summarized in the previous responses. The information about the population density categories being based on “Oak Ridge National Laboratory’s LandScan USA” was a specific detail found within these secondary sources, which themselves are summarizing the content of the official NPRM.