Area Mail Processing study decision 2/23/12
In a move to help ensure the future of the nation’s mail system, while adapting to America’s changing mailing trends, the U.S. Postal Service today announced that the Area Mail Processing consolidation studies that began more than five months ago have been completed.
These changes are a necessary part of a larger comprehensive plan developed by the Postal Service to reduce operating costs by $20 billion by 2015 and return the organization to profitability.
The Postal Service is in the midst of a financial crisis due to the combined effects of the economic recession, increased use of electronic communications, and an obligation to prefund retiree health benefits. First-Class Mail volume has deteriorated, leading to significant revenue declines, and the obligation to prefund these retiree health benefits on an accelerated basis remains unresolved. To date, legislative proposals to address the financial crisis remain pending, leaving the Postal Service and the mailing industry it supports in an increasingly precarious position.
Since 2006, First-Class Mail volume has rapidly declined, leaving a mail mix that generates far less revenue than it costs to sustain postal operations. The dramatic decline in mail volume has resulted in an enormous amount of excess capacity within the network, creating significant opportunity for consolidation.
The Postal Service continually assesses its infrastructure, network, logistics capabilities and mail processing operations and constantly makes changes designed to improve efficiencies by making better use of space, staffing, equipment and transportation to process the nation’s mail.