When Best Buy Co. Inc. approached JD Claridge to ask if his company, XCraft Enterprises Inc., could potentially step in as the retailer phased out Chinese-made drones, he seized the opportunity, landing a $1 million purchase order that could put the Hayden-based drone manufacturer on the national stage.

XCraft is currently racing to meet a Nov. 1 delivery, just ahead of the holiday season, Claridge says. It’s currently meeting with local financial institutions to secure a $500,000 loan that will help meet its fast-approaching deadline.

“This is a huge opportunity,” says Claridge, CEO of XCraft. “We’ve been in this drone business for over 10 years now, and there were several other U.S. companies when we started. … Most of those don’t exist anymore.”

Beginning in 2017, the U.S. government started a federal crackdown on Chinese-made drones over concerns about national security, data vulnerability, and spying, Claridge explains. A prominent Chinese drone company, DJI, has squeezed out many U.S. drone companies from the market over the years, including some in the Inland Northwest, says Claridge.

According multiple market share estimates, DJI accounts for around 70% of all commercial drones sold globally for hobby and industrial use, including aerial photography, package delivery, and weather research.

DJI has dominated the international market because of its ability to scale and leverage its manufacturing capabilities and sell its products at very low prices, Claridge says. XCraft has survived in the market by pivoting from the consumer space to commercial products and focusing on drones for public safety, security, mapping, and energy, he says.

While restrictions on Chinese-made drones were initially coming from the U.S. military, there has been escalating pressure on the market as a whole. In December 2024, former President Joe Biden signed the National Defense Authorization Act for fiscal year 2025, which included requiring a national security review of DJI and other Chinese drones. Previously, in October 2024, U.S. Customs and Border Protection began detaining and delaying DJI shipments at the border, citing forced labor laws. In June 2025, President Donald Trump signed executive orders to boost the U.S. drone industry and increase protections against foreign-made drones.

Best Buy was formerly a large DJI distributor, Claridge says. Now, their drones have virtually been taken off the shelves, he contends.

“We want to fill the hole that DJI is leaving, which is at least a $5 billion market in this country,” Claridge says. “We need to deliver this purchase order; it definitely would be a stepping stone to get us out there in the consumer space again.”

Founded in 2013 in Sandpoint, Idaho, XCraft received acclaim when it landed a $1.5 million cash infusion on the reality TV show Shark Tank in 2015. Since then, it has relocated its operations to a 4,000-square-foot facility near Hayden Airport at 3661 W. Daugharty Loop. 

The company employs just under 10 staff and supplements its operations with temporary labor during production time. Its annual revenue is bouncing back with year-over-year growth over 400%.

“There were some tough years,” Claridge says. “So it’s coming from a low point, but we’re definitely headed in the right direction.”

While the Best Buy order could reestablish a footing for XCraft in the consumer market, where the company is also pushing into two other arenas: entertainment and defense.

In the last year, XCraft has completed contracts to manufacture drones for drone light shows and has even held shows of its own. In June, the company’s drones formed a 15-minute choreographed light show over the Coeur d’Alene Resort. Drone light shows are an increasingly popular alternative to fireworks, Claridge contends. The shows are marketed as a safer, pet-friendly, and more environmentally-friendly alternative or complement to fireworks.

“That’s not a market we’ve been in the past,” Claridge says. “But it’s a good up-and-coming one and there’s lots of potential there.”

With U.S. leadership pushing for alternatives to Chinese technology, XCraft has been positioning itself to expand beyond retail sales to also include contracts in the defense market. For instance, Claridge says earlier this month, the company was invited to a special event in San Diego to demonstrate its drones to a group of U.S. Navy SEAL leaders.

President Trump’s stance on American drone dominance also could play a role to boost XCraft's defense market share. Officials have cited the widespread and impactful use of lethal drones that have significantly changed modern warfare. This change, and the U.S.’s lag in this space, was especially highlighted at the military event in San Diego, Claridge says.  

“They’re taking our product for evaluation,” Claridge says. “They’re hungry for drones, and American-made drones. … China is ahead of us, I’ll be honest. We need to catch up.”

Moving forward, Claridge says the company’s wider goal is to pursue both the military market, which he says is valued at about $7 billion, as well as the enterprise market while positioning the Inland Northwest as the drone capital of the country.

“Let’s do it. XCraft will do it,” Claridge states.