Staff shortage is a serious challenge for Defence City – UkrArmoTech
The operation of the special legal regime for defence and military equipment manufacturers Defence City faces financial and staffing risks, the director of UkrArmoTech company Hennadii Khirhii said in an opinion column for Ukrainska Pravda.
"The main financial risk is the lack of state investment in infrastructure development (roads, communications, security). The absence or untimely allocation of these funds will slow the project down", – he wrote.
According to the company’s head, the existing legal mechanisms in the areas of land use, construction, and export–import operations must comply with the new simplified system to prevent legislative inconsistencies.
"Transparent communication with private investors is needed, as they may adopt a wait-and-see position due to wartime risks. Tax and regulatory incentives must remain transparent, guaranteed, and long-term. Without state orders or preferential lending, capital inflows will be insignificant", – the UkrArmoTech director stated.
He added that the procedure for manufacturers to prove the targeted use of profits must be as straightforward as possible and must not create fiscal risks for enterprises exempted from reinvested profit taxation.
Khirhii emphasized the shortage of qualified professionals in the sector.
"The key operational challenge is the lack of skilled personnel – highly specialized engineers, designers, and technologists. The mere existence of incentives does not solve the shortage of specialists, especially under conditions of mobilization and migration. A partial response should come from the president’s signing of draft law №13335, which grants critical enterprises the right to a 45-day deferral for specialists whose military registration documents are improperly processed," the head of the defence company noted.
Context:
UkrArmoTech LLC is a manufacturer of armored vehicles for the needs of the Armed Forces of Ukraine, the State Border Guard Service, the Ministry of Internal Affairs, and special formations within the national security and defence sector. According to its corporate website, the company maintains a full production cycle – from laser cutting of armor steel to the assembly and testing of finished products.