The Postal Service is facing unprecedented volume declines and a projected $238 billion loss during the next decade.
Profound technological and social changes have altered the way Americans communicate. For many, electronic media have replaced the letter as the primary means of social and business communication. Revenue from First-Class Mail — the Postal Service’s longtime bread-and-butter product — continues to decline as the use of electronic mail and the Internet increases.
Electronic diversion and the recession were significant contributors to a continuing decline in mail volume in FY 2009. Nearly 13 percent of total volume was lost, bringing Postal Service revenue down by nearly $7 billion. Current economic conditions have also caused severe financial stress for the largest users of the mail. The trends underlying these declines will only continue.
Because the Postal Service receives no taxpayer funds to pay for its operations, and must cover its costs with the revenue it receives for postal products and services, fundamental changes are needed to help close the growing gap between revenues and costs.
To ensure that America continues to have a viable Postal Service that can finance universal service, the Postmaster General has introduced a comprehensive plan including revenue generation, cost cutting, increased productivity, and legislative and regulatory changes that will form the necessary foundation for a leaner, more flexible Postal Service.
Five-day delivery is one of the fundamental changes laid out in the plan that will help the Postal Service better respond to changing customer needs.
