It’s no secret that the United States Post Office is facing unprecedented challenges in finding its way in modern culture and in our current economic state. On March 30th of this year, US Postmaster General John Potter proposed the cancellation of Saturday delivery as method to cut costs and help the post office adapt to changing times and return to financial health. With approval of congress that is slated for later this year, these changes could come as early as 2011. The shortfalls in revenue are mainly attributed to popularity of online social communication, online payment systems, and the reduction of direct mail and advertising that occurred with the economic downturn in 2007.
Here are a few interesting facts on the about the USPO and that bring a little insight to the challenges they are facing.
- The USPO lost a total of 3.8 billion in 2009
- Over the next decade, the USPO estimates a total loss of 238 billion
- The USPO is predicting a 37% drop in first class mail by 2020.
- The USPO is estimating a 3 billion cost reduction in the first year, and a 5 billion cost reduction for all subsequent years, by eliminating Saturday delivery.
- In 2006, credit companies sent out an estimated 8 billion pieces of direct mail. According to Mintel Compermedia,a company that tracks usage of direct mail, credit companies sent out just over 1 billion pieces in 2009.
- On April 13th, 1957, the USPO did cancel Saturday delivery after budget shortfalls………for one day. After public out cry, president Dwight D. Eisenhower, pushed through a bill in one week for an additional 41 million in USPO funding to continue Saturday delivery. The following Saturday, mail was delivered.
At Printing Partners, we are beginning to discuss how the possible elimination of Saturday delivery might impact our business, and how it impacts our clients. We encourage you to share with us your thoughts on how this change might impact you business. We also welcome your suggestions and ideas on we can better serve you with intelligent solutions with direct mail. Please comment below or send your thoughts to email@example.com. Support the USPO by sending you comments via mail to Brian Miller, Printing Partners, 929 West 16th Street, Indianapolis, IN 46202.