A massive American flag stretches wide across the factory wall of Vector Defense Inc. in Bluffdale.

But “Old Glory” is not merely for decoration here.

Instead, the flag is “a reminder of what we’re doing, what we’re serving, and who we’re standing up to serve,” Vector CEO and founder Andy Yakulis told the Deseret News.

“It helps us rally around the concept that the American war fighter needs the most up-to-date technology. And right now, that’s unmanned systems drones. … We’re all very focused on achieving that mission — making sure we’re streamlining the best-in-class technology to the American war fighter.”

The minute-to-minute headlines from combat hot spots such as Ukraine and the Persian Gulf echo an emerging combat reality: Drones are changing the very character of war.

And militarized unmanned aircraft systems are presenting a battlefield paradox. Today’s drones are relatively cheap — but they are also increasingly deadly. Drones are reportedly responsible for 75% of Ukraine war casualties.

As Forbes reported, drones are not merely a new weapon — they are a new era of warfare. “The closest historical analogy may be the tank, introduced during World War I, which broke the murderous stalemate of trench warfare.”

Gov. Cox: Utah’s drone industry can protect service members — and strengthen state’s economy

Now Vector Defense Inc. — and by extension, the Beehive State — are increasingly positioned as key players in accelerating the country’s military-grade drone ecosystem.

On his LinkedIn page, Utah Gov. Spencer Cox recently announced in a video that Utah is “answering the call to build America’s drone industrial base” — while furthering American drone dominance.

The state’s growing drone industry, he noted, “strengthens our economy and supports those who defend our nation.”

National security, said Cox, depends on building critical technology quickly, reliably and at scale — and in a regulatory friendly environment.

Utah’s drone industrial base, he added, prioritizes domestic manufacturing, vertical integration, and rapid delivery to those charged with protecting the country.

“We move fast, cut through red tape, and we support companies that are willing to build here at home,” said Cox. “Government and industry will lead the way — manufacturing in Utah, integrating in Utah, and delivering real capability with speed and discipline.

“That’s how we protect our service members. That’s how we strengthen our economy.”

What’s ‘warfare as a service’?

Protecting America’s men and women in uniform while maximizing their drone capability serve as dual missions for Yakulis and his Vector team.

A West Point grad, Yakulis spent almost two decades in the U.S. Army — including significant duty serving in Special Operations.

The former Army helicopter pilot remembers utilizing military drones such as the Reaper that searches for targets and can be used to shoot missiles similar to an airplane.

“But the drones that are being used now are being used like munitions — a one-way attack,” he said. “People sometimes call them like suicide drones. That was nowhere on our radar when I was in uniform.”

Near the end of his Army tenure, Yakulis recognized a market gap as unmanned drone systems were being used in massive quantities in Ukraine as part of the nation’s ongoing war with Russia.

Simultaneously, the drone tech across Ukraine’s front lines was iterating at lightning speeds.

“And so we saw these two things change which created this revolution of military affairs. More tech being used. More drones being used. And faster iteration on the design of the drones.”

During his Army officer career, Yakulis became well acquainted with the U.S. defense procurement system. It can take several years, he said, to get a piece of technology from R&D to actually be utilized by warfighters in combat.

Given the speedy “tech refresh” pace in Ukraine, America’s legacy procurement system presents “a massive imbalance,” he added.

By launching Vector in 2024, Yakulis set out to create a new model of providing expendable — aka “attritable” — drones to the American military.

But the company does more than simply sell a piece of drone tech hardware. That’s only one component.

“We came up with this idea that I call ‘modern warfare as a service.’”

Vector sells to the military a “service-based contract” that involves training, product and capability development — and the large-scale delivery of unmanned systems.

“But because the military isn’t buying the drone, we don’t have to go through the legacy seven- to 10-year procurement model,” explained Yakulis.

“We can sell you a service today — and underneath that service provide you the best drone that exists on the market today. And then tomorrow, I can provide you with an updated drone underneath that same service contract.”

And while Vector may be headquartered in the southwest end of Salt Lake County, it functions as a global enterprise.

The company has a team stationed in Ukraine, and another in Israel. There, they observe how drone systems are being used — and then bring those insights back to Utah to update their drone training and the designs.

“We have to make a concerted effort to stay up-to-date with how warfare is constantly changing,” said Yakulis.

“That’s why it’s so important for us to have a footprint in war zones — and that’s why it’s so important to have our leadership and a lot of our engineers cycle through those war zones to make sure they understand how technology has evolved.”

What makes Utah the ideal home for drone development?

After separating from active duty military, Yakulis and his associates started the venture-backed Vector. They were eager to begin implementing their fast evolving mission and business model.

But first, Vector needed a home.

Given its density of industry talent, California’s Silicon Valley works “decently well” for software companies, said Yakulis. But it’s hard to build a manufacturing company in the Golden State.

“There’s so many regulatory restrictions on manufacturing in California, and space is just at a premium,” he said. “It’s very, very expensive to do a very large facility like we have here in Bluffdale.”

And there were also Vector’s employees to consider. The Bay Area’s cost of living rate is famously prohibitive.

But business-friendly Utah checked all the boxes, said Yakulis.

“There’s a very supportive culture here in Silicon Slopes,” he added. “And there’s a lot of value-driven, mission-driven individuals that want to work on something that matters.

“Utah’s been very welcoming to us.”

Vector quickly became part of the 47G family — a Utah aerospace and defense industry “ecosystem” of over 200 members and a variety of local academic institutions.

“And the governor,” added Yakulis, “has been incredible to us.”

Beyond its business advantages, Utah is an ideal spot for drone testing and training. “Some of my colleagues or competitors in California have to travel two or two-and-a-half hours just to fly a drone,” said Yakulis.

“We walk right out to the back of our warehouse to fly a drone.”

Meanwhile, Utah military installations such as Camp Williams and those in nearby Dugway allow Vector a venue for long-range or explosives drone testing and training.

“Just having high-density military here — which is our primary customer — and access to training areas has been phenomenal for us,” Yakulis added.

Vector employs almost 100 people, with most working in Utah.

Equipping U.S. warfighters with drone tools and know-how

Integration is a defining term at Vector.

The Ukrainians, explained Yakulis, have proven adroit at integrating with their soldiers on the front line in eastern Ukraine. Obviously, Vector can’t replicate that level of combat fusion.

“So the way that we replicate how fast we are able to iterate for the American military is we do a lot of drone training for them,” he said. “This is how we got our start — as a drone training company.”

Such schooling goes beyond simply teaching a soldier how to fly a drone from Point A to Point B. Soldiers need to know how to optimize this new weapon. So drone tactics and doctrine are being perpetually examined and reinvented.

“The technology is only as good as the tactical application of it — and you will only get the maximum effectiveness out of the tactics if you know how to use your technology,” said Yakulis.

Vector employs “a very, very interesting cohort of individuals” who are experienced tacticians that also understand technology and proper training methods.

Such a training force, said Yakulis, blends prior military personnel who are high-end tactical experts working alongside drone specialists.

Vector’s training seeks to teach American war fighters how to best utilize advanced unmanned systems. “But we’re also learning from our end user to make sure that we are building exactly what they want for the American military,” said Yakulis.

And while it’s essential to understand what, say, the Ukrainian military is doing with drones in the fight against Russia, Vector can’t simply cut-and-paste such data to the American military, he added.

“You have to embed; you have to integrate with the American military with that technology to figure out, ‘How are they going to use it?’ ‘What new feature do they want on that drone?’

“And then, back here in our Bluffdale facility, we build that new feature and provide (American war fighters) on a subsequent version of that service contract.”

Next step: Improving cost-efficient counter-drone tech

Global affairs obviously aren’t pausing for Vector or any others from the nation’s drone industry to develop the latest tech and training.

Even while speaking with the Deseret News, Yakulis was monitoring the day’s events from Operation Epic Fury — the ongoing American war with Iran.

And as with the Ukraine conflict, the U.S. and its allies are dealing with the challenges and tactical opportunities of drone weaponry.

Prior to the current ceasefire in the region, Iran launched “a massive amount of unmanned systems” to attack regional neighbors. Attritable drones are having an exponential impact on the vast Middle East battlefield — and American military leaders have prioritized attacks on Iranian drone platforms.

“I’ve been talking to the company a lot about our country being at war,” said Yakulis. “We need to be on a wartime footing too — and be thinking about how fast we’re building and how fast we’re iterating.”

Developing better and cheaper tech on the counter-drone side are now key priorities for Vector and the rest of the nation’s military/defense industry.

“It’s very hard to defeat what we call ‘attritable drone mass.’ … You can take one drone down, but can you take down 100 or 1,000, especially when decoys come in the mix?

“And can you do that at a price point that makes sense?”

“Unit economics” has become a critical warfare talking point when, say, a $2 million American Patriot missile is being used to shoot down an Iranian Shahed drone made for $35,000.

“The economics just don’t work out,” said Yakulis. “We just don’t have enough Patriot missiles — and/or we will just spend too much money trying to procure too many missiles.

“So we need to do a better job to provide a cost-equal interceptor per drone.”