USPS Responding to Changes in the Marketplace


November 14, 2014 



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Newburgh, NY— Operational adjustments at the Mid-Hudson Processing & Distribution Center in Newburgh are scheduled for April 2015. Mail processing operations will be moved from the Mid-Hudson facility in Newburgh to the Albany Processing & Distribution Center. The consolidation of operations is part of the Postal Service’s nationwide Network Rationalization Plan to respond to the changes in the marketplace. A portion of the mail processing operation will remain at the Mid-Hudson facility in Newburgh as well as the customer service, retail, Post Office Box, and business mail entry operations.

Like any successful organization, the Postal Service understands it must make operational changes to adapt to meet the changing needs of the American public. The fact is that U.S. Mail is changing. There are now fewer letters and considerably more packages, and the network must reflect that.

With major volume decreases in First- Class Mail®, the Postal Service has significant excess capacity in its network and cannot sit idly by and do nothing. The Postal Service firmly believes that the operational changes being implemented are necessary. In the process, the Postal Service has sought to minimize impact to customers and employees.

Making these changes will enhance the viability of the organization and its ability to continue providing service in the future. Key Network Rationalization Facts

  • The first phase of network rationalization was highly successful. There were no major service disruptions, and the effort generated annual cost savings of approximately $0.9 billion. The Postal Service expects to capture $2.1 billion in total annualized savings from Phase 1 and Phase 2 when full-up.
  • Single-piece First-Class Mail volume, the product most affected by Phase II, has declined 53 percent in the past 10 years. This mail consists largely of personal correspondence, bill payments, greeting cards, etc. When sent locally, it is currently delivered within one day. Beginning in January 2015, this mail will be delivered in two days.
  • For 49-cents, single-piece First-Class Mail will be delivered anywhere in the contiguous United States within three days.
  • Package Services and Priority Mail® will not be affected and will be delivered based on current service standards. This includes most medications and small business shipping.
  • Network rationalization has resulted in no bargaining unit layoffs. There will be a methodical transition for employees in the affected mail processing facilities.
  • Changing service standards and right-sizing the Postal Service’s processing and retail infrastructure are necessary aspects of a larger comprehensive plan designed to reduce overall operating costs by $20 billion by 2017, return the Postal Service to financial stability and help ensure the future of the nation’s mail system.

A decade of facts and figures

The Postal Service delivers for America. Even in an increasingly digital world, the Postal Service remains part of the bedrock infrastructure of the American economy, serving its people and businesses, and binding the nation together. The core function of the Postal Service is to provide secure, reliable, affordable delivery of mail and packages to every address in America, its territories and military installations worldwide.

 2013201220112010200920082007200620052004
Annual Revenue $67.3 B $65.2 B $65.7 B $67.1 B $68 B $74.9 B $74.7 B $72.7 B $69.9 B $68.9 B
Total Career Employees* 489,727 522,144 551,570 583,908 623,128 663,238 684,762 696,138 704,716 707,485
Total Mail Volume 158.4 B 159.9 B 168.3 B 170.9 B 176.7 B 202.7 B 212.2 B 213.1 B 211.7 B 206.1 B
Total First-Class Mail Volume 65.8 B 68.7 B 72.5 B 77.6 B 82.7 B 90.7 B 95.9 B 97.7 B 98.1 B 97.9 B
First-Class Single Piece Mail Volume** 22.6 B 23.2 B 25.8 B 28.9 B 31.6 B 35.4 B 42.3 B 44.4 B 45.9 B 47.7 B
Total Shipping / Package Volume*** 3.7 B 3.5 B 3.3 B 3.1 B 3.1 B 3.3 B
Advertising Mail Volume 80.9 B 79.5 B 84.0 B 81.8 B 81.8 B 98.4 B 103.5 B 102.5 B 100.9 B 95.6 B
Delivery Points 152.9 M 152.1 M 151.5 M 150.9 M 150.1 M 149.2 M 148.0 M 146.2 M 144.3 M 142.5 M
Total Postal-Managed Retail Offices 31,135 31,272 31,509 32,028 32,552 32,549 32,169 32,583 32,355 32,971
Total Retail Offices 35,074 35,369 35,756 36,222 36,496 36,723 36,721 36,826 37,142 37,159
Total Retail Customer Visits 989.1M 986.2 M 1.02 B 1.06 B 1.12 B 1.16 B 1.18 B 1.24 B 1.23 B 1.22 B
Total Retail Revenue $18.3 B $17.5 B $16.9 B $17.5 B $17.7 B $18.7 B $18.5 B $17.8 B $17.3 B $17.2 B
Postal-Managed Retail Office Revenue $10.8 B $10.6 B $10.9 B $12.1 B $12.7 B $13.7 B $14 B $13.9 B $13.9 B $14.5 B
Alternate Access Revenue $7.5 B $6.8 B $6 B $5.4 B $5.1 B $5 B $4.4 B $4 B $3.4 B $2.8 B
Alternate Access Revenue Percentage 41% 39.1% 35.5% 30.7% 28.6% 26.8% 24% 22.2% 19.7% 16%
Online Revenue – usps.com**** $873.3 M $787 M $704 M $643 M $581 M $586 M $454 M $343 M $249 M $140 M
Online Customers 435.4 M 366.8 M 423.6 M 373.2 M 204.4 M
Total Delivery Routes 225,152 227,000 228,160 230,600 232,900 244,800 246,500 244,700 243,000 241,200
Total Vehicles 211,654 212,530 213,881 215,625 218,684 221,047 219,522 216,004 214,146 213,321

As of Jan. 21, 2014.

** Mail bearing postage stamps — bill payments, personal correspondence, cards, letters, etc.

*** Includes Priority Mail, Priority Mail Express, First-Class Packages, Package Services, Parcel Return Service and Parcel Select.

**** These figures are included in Alternate Access Revenue.

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