Some Phoenix residents got a preview of how drones are reshaping the future this Independence Day when the town of Carefree used drones with LED lights instead of fireworks to celebrate the holiday. For the past two years, Carefree has opted to go with drone-based effects instead of traditional pyrotechnics in order to reduce fire risks. The drone displays also avoid scaring animals and traumatizing combat veterans experiencing post-traumatic stress, Mayor Les Peterson says.

The way drones are replacing fireworks in Phoenix embodies the bigger impact that the technology is having on the way Arizonans live and do business. Drones are shortening delivery times, cutting labor costs and improving safety. Here’s a look at three ways drones are transforming the future of business in Arizona.

1. Automating and Accelerating Deliveries

Drones have already begun making an impact on business logistics by automating deliveries. Amazon, which has taken a lead in this field, is currently testing sidewalk drones that can pick up shipments from trucks and wheel them to customers’ homes. Grocery chain Kroger is already using similar technology to make home deliveries in Phoenix, illustrating how fast drone couriers are catching on.

Using drones to automate logistics will dramatically impact delivery speeds. Amazon has already rewritten the book on shipping expectations with its Prime service two-day and same-day delivery options. With its drone-powered Prime Air service, Amazon expects to be able to cut shipping times down to 30 minutes in some locations, Adweek reports.

2. Cutting Logistics and Labor Costs

Drone deliveries will save businesses money by cutting logistics and labor costs. By using drones to automate an increasing majority of the logistics process, businesses can save 40 percent on costs, enabling them to cut prices 15 to 20 percent while still increasing profit margins15 to 20 percent, McKinsey estimates. By 2021, drones could be taking over as much as $127 billion in work currently done by humans, according to PricewaterhouseCoopers.

Drones will also make it easier and cheaper to maintain equipment. For instance, if a product calls for a vacuum seal using an o-ring made from a specialized material such as butyl or fluorocarbon, drones can make it easier to automatically reorder supplies from a custom sealing specialist such as Apple Rubber. In the future, the entire maintenance process may be handled end-to-end by drones and robots supported by artificial intelligence.

3. Making the Workplace Safer and More Secure

Drones are also improving safety and security standards in the workplace. For instance, Scottsdale-based drone manufacturer Airobotics recently debuted a highly stable drone-powered payload called the Trion for safety inspection and security applications. The 2.6-pound payload uses a high-definition camera with continuous optical zoom and 360-degree panoramic capability to provide surveillance day or night. Data collected by the drone can be processed through artificial intelligence for smart decision making.

Applications like this can enhance safety and security in industries such as construction, mining and drilling, as well as in indoor warehouses. For instance, drones can take aerial footage for roof inspections, reducing risks to human workers. Indoors, drones can help pick items on high shelves.

Drones Are Changing the World

As the drone delivery model pioneered by Amazon continues to advance, drones will become an increasingly important part of everyday business in Arizona and across the country. They will take over a growing portion of logistics and surveillance chores, speeding up deliveries, cutting costs and improving safety and security. Companies that begin integrating drones into their business models now will enjoy an advantage on competitors who come late to the game in the future.