Financial Challenges Bring Positive Change?

Financial challenges have loomed over the USPS for nine consecutive years, calling for the need for a postal reform. The House committee recently met to address postal service delivery standards and concerns.mailbox

In a two year span, the USPS closed 141 processing facilities with the decision to shut down further facilities quickly coming to a standstill. Why? Slower mail delivery impacting business and consumers. With over 154 billion pieces of mail delivered in the 2015 fiscal year, the USPS plays an integral role in the delivery of direct mail.

The Postal Service Reform Act’s goal is to stabilize the USPS financially, and while the USPS defended their initial decision for the closures, the House committee wants to change the provision and improve delivery standards. Rep Marcy Kaptur states, “It is time we restored delivery standards on the Postal Service.”  Committee Chairman Jason Chaffetz voices his concerns, that without changes to the bill the postal service will have a negative outcome.

Voting

The House committee voted to reinstate the 2012 delivery standards. Mark Dimondstein, President of the American Postal Workers Union (APWU), feels this “is the first step for postal workers and customers.” The House Committee also eliminated a section of the bill that could have negatively impacted the catalog industry. However, final outcomes of this bill will be made later this year.

Discussion Drafts

A discussion draft presented by the House committee for the latest postal bill sheds light on the future of mail delivery, stating the House will look at “The value of the mail service actually provided each class or type of mail service to both the sender and the recipient, including but not limited to the collection, mode of transportation, and priority of delivery” and “The importance of pricing flexibility to encourage increased mail volume and operational efficiency.”

Looking to the future

With the focus on improving delivery standards and addressing rising costs, the next few months will prove to be a challenge for the USPS.

Concerned about the cost of your mailings? Catch up on the latest postal promotions for the upcoming year by reading our blogs and newsletters.

About the Author: Jim Gibbs

Vice President of Sales & Marketing at The Dingley Press. Jim has been with Dingley since 2002 and lives in Maine near our Lisbon, Maine plant location.