USPS Network Changes Coming
The USPS Postmatser General, Patrick Donahoe, is holding a press conference on Sep 15th to discuss the latest USPS cost-cutting proposals. For full details and electronic news kits, check out this link: http://about.usps.com/news/national-releases/2011/pr11_103.htm.
While nothing is finalized yet, the USPS is lobbying hard for and will more than likely achieve (according to DC insiders) the move to a 5-Day delivery week, dropping Saturday. However, this is only one ‘small’ step towards saving the USPS, as it will only save a few billion of the estiomated $12-20 billion needed to keep the USPS solvent over the next few years. Insiders also note that even though the Postal Service has become a hot topic on Capitol Hill (finally!), it is unlikely that any one of the proposed bills, or the new one expected soon from the Obama administration, will be able to be enacted this session. The USPS will continue to default on some key payments and will technically be out of cash on Sep 31st.
The announcement today includes a list of 250 Mail Processing Facilities across the country that the USPS is ‘studying’ as candidates for closure. There are about 500 mail processing facilities in the US (separate from you post offices) and the USPS would like to reduce this to less than 200 in the next few years. In addition to the facility closures, this will also lead to changes in the product Service Standards- meaning it will take longer for your mail to reach customers.
From the article: “WASHINGTON — Faced with a massive nationwide infrastructure that is no longer financially sustainable, the U.S. Postal Service today proposed sweeping changes designed to save the organization up to $3 billion a year by cutting its network of processing facilities by over half and adjusting service standards.
Proposals under consideration include studying nearly 250 processing facilities for possible consolidation or closure, reducing mail processing equipment by as much as 50 percent, dramatically decreasing the nationwide transportation network, adjusting the workforce size by as many as 35,000 positions, and revising service standards for First-Class Mail.
“We are forced to face a new reality today,” said Postmaster General Patrick Donahoe. “First-Class Mail supports the organization and drives network requirements. With the dramatic decline in mail volume and the resulting excess capacity, maintaining a vast national infrastructure is no longer realistic. Since 2006, we have closed 186 facilities, removed more than 1,500 pieces of mail processing equipment, decreased employee complement by more than 110,000 through attrition and reduced costs by $12 billion.” “
How will you be affected?