Michael Swartz, CEO of Lake Shore Cryotronics, Inc., was appointed to the President’s Export Council Subcommittee on Export Administration (PECSEA) by US Commerce Secretary Gary Locke earlier this month. Swartz was one of 24 executives from a range of industries chosen to advise the US government in matters concerning export regulations and their effect on US industry.
“Export regulations affect small businesses uniquely in ways that larger businesses don’t experience,” Swartz said. “My goal is to drive those issues in the direction that will benefit smaller businesses in a way that ensures National Security.”
More than 60% of Lake Shore’s business is international. Before the company can ship products overseas, they need to know how the purchase will be used, whether the end-user is valid, and that the shipment will be delivered in ways that do not compromise national security. Export regulations also cover the exchange of information, creating another challenge for businesses when they attend conferences and trade shows and talk about their products. All of these precautions are both time consuming and expensive.
“The complexity of export regulation is challenging for anyone selling technical goods and services overseas or to foreign nationals in the United States,” Swartz said. “Although large companies have dedicated legal departments to deal with this, it is a challenge for small businesses to decipher what is even applicable to their businesses.”
Swartz says Lake Shore spends significant amounts of time ensuring compliance with export regulations. His recent appointment will help him voice the concerns of companies like Lake Shore as well as the cryogenics industry as a whole.
“The best regulations are those that are simple and understandable; the current regulations are neither,” Swartz said. “Through my involvement on this committee, I hope to raise the concerns of all small and medium sized technical businesses.”
The PECSEA’s first meeting, which took place on March 10 in Washington DC, was the first of four to six that will take place throughout the year.
