While the world is focused on the invasion of Ukraine by the Russian Federation, the effects of the conflict have managed to ripple to The Magic City.
Debra Hays, CEO of recently merged company ConcertIDC, was looking to establish an office in Ukraine at Birmingham's has a sister city, Vinnytsia. Hays said that Ukraine has become a dependable source of offshore talent in the same way China and India were 10-15 years ago. The company was planning to visit the potential office site in March or April.
But ConcertIDC has called those plans off. The company was also looking at other Eastern European markets like Poland, but continuing tensions may take those options off the table as well. The company is now mulling over opportunities for another office in India or South America.
ConcertIDC is looking to establish an office centered on software development. The company was looking to diversify its dependence on other nations for outsourced talent — the pandemic and subsequent restrictions in India opened the company up to putting more offices in other countries.
More broadly, the effects of the conflict could hit Birmingham businesses, primarily in the areas of food prices, said Scotty Colson, the honorary consul from Alabama to Ukraine. That's because Ukraine is an exporter of food such as corn, sunflowers and meat, among others. Ukraine is also a manufacturer of rocket parts that are used by Boeing and other manufacturers in the state.
Also, due to sanctions against Russia, fuel prices will likely increase as well. The U.S. Energy Information Administration said in a report earlier in February that crude oil prices were already rising in part because of supply concerns related to Ukraine.
