Mailing/Fulfillment - Postal Trends

As technology advances, learn to blend physical marketing messages with digital channels to guarantee campaigns are more effective.

A rate hike, a decrease, an extension of the temporary "exigent" increase, and an even an increase and decrease a few months apart are all plausible 2015 scenarios for First Class, Standard, and Periodicals mailers. That uncertainty is a far cry from the past few years, when "market-dominant" postal rates inched up each January based on the rate of inflation.

The three-judge panel considering an appeal of the exigency case seems unlikely either to eliminate the rate hike or to make it permanent, according to Stephen Kearney, executive director of the Alliance for Nonprofit Mailers.

The U.S. Postal Service recently reported having 616,025 active employees, just 362 fewer than a year ago. The number of full-timers actually inched up by 1,464, to 467,844. That’s a far cry from the previous six years, when the annual workforce reductions ranged from 13,000 to nearly 53,000.

Downsizing of the postal workforce seems likely to resume soon, however. USPS is moving forward with a plan to close about 80 processing centers in the next few months, which could lead to a reduction of 15,000 jobs. A recent effort to block the plan in Congress has apparently fizzled out.

This week, Structural Graphics is featuring a pop-up invitation that it developed to invite businesses to an event to learn more about the cost and service advantages of using UPS over other quick-ship services.

Even as some lawmakers push to limit Postal Service cost-cutting measures, the agency still plans to reduce its workforce by up to 15,000 employees and close up to 82 processing centers.

The agency estimates that it could save $750 million annually from the planned cuts, and said it had already saved $865 million from closing 141 mail processing facilities in 2012 and 2013.

The Postal Service believes the best way to position the agency for the future is through comprehensive reform legislation, according to spokeswoman Patricia Licata, but will continue to cut costs where it can.

Letter carriers and other postal employees have been saying for several years that changes at the Postal Service would lead to more job-related injuries. A new report suggests they may be right.

"Despite the Postal Service’s efforts to decrease the number of employees [by 19% since 2008], its workers’ compensation costs have increased 35 percent,” the U.S. Postal Service Office of Inspector General noted in a report last week.

This week, Structural Graphics is featuring a creative direct mail solution it produced for AAA that exemplifies how a company can still be creative and engaging even when delivering multiple messages. AAA was trying to communicate its "many ways to save" in a creative, engaging and comprehensive way.

The stage is being set this month for another round of argument and angst over the future of the U.S. Postal Service when Congress returns to work in September.

The latest squabble erupted after the USPS, which this summer reported a net loss of $2 billion in the second quarter of 2014, announced plans to cut 15,000 jobs and consolidate 82 mail-processing centers in 2015. The Postal Service has already consolidated 141 mail-processing facilities since 2012.

The USPS continues to drown in red ink, despite an increase in revenue in the quarter ending June 30. A big part of the losses stem

At GRAPH EXPO 14 in Chicago from Sept. 28–Oct. 1, mailing, printing and fulfillment firms that offer direct mail services―or are considering doing so―will be able to access the latest mailing information and real-world solutions at the GRAPH EXPO 14 Deliver Theater, sponsored by AMSP/NAPL/NAQP. The theater will provide free daily programs covering all facets of mailing service operations, management and strategic development.

The Center for Responsive Politics reports the postal service has been paid $17.5 million so far this election cycle for delivering political direct-mail pieces, ranking it No. 4 on the center's list of political vendors. This revenue won't close the postal service's fiscal gap — it lost $2 billion last quarter — but every little bit helps.

The No. 1 vendor is Waterfront Strategies, which has spent nearly $42 million on media buys on behalf of Democratic candidates, with most of this money coming from liberal super PACs.