The US Postal Service Board of Governors stated that despite achieving record growth in its package business and stabilization of other revenues, the Postal Service continues to operate with an inflexible business model that hinders its ability to be self-sufficient.
The US Office of the Inspector General suggested a step toward solution that would impact our industry: the Postal Service could generate additional revenue of $17.4 million in 2013 and 2014 by increasing government shipping contracts.
If the USPS can increase revenue by becoming a US government primary carrier, it’s a step towards sustainability of the entity relied upon daily as a commercial and consumer service. The fiscal flipside concerns private sector carriers impacted by the contracting shift. If business demand remains robust, the net result should be utilization of the additional capacity. Shippers would benefit from the increased options created by new availability in the marketplace.
Something lucid in USPS sustainability discussions is the shocking size and scope of the organization. Here’s content from their official communications; they’d be missed if their reach ceased to exist.
“A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation — 151 million residences, businesses and Post Office™ Boxes. The Postal Service™ receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations. With 32,000 retail locations and the most frequently visited website in the federal government, usps.com®, the Postal Service has annual revenue of more than $65 billion and delivers nearly 40 percent of the world’s mail. If it were a private sector company, the U.S. Postal Service would rank 35th in the 2011 Fortune 500.”
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