Why We Are Adjusting Our Infrastructure

For decades, the U.S. Postal Service expanded its national infrastructure to accommodate an expanding nation and increasing volumes of mail. The number of Post Offices, processing and distribution centers, vehicles, and employees increased exponentially.

In 2006, mail volume reached an all-time high of 213 billion pieces and since that time, it has been steadily and consistently declining. With the mail volume decline came the subsequent steep decline in revenue. Less revenue, coupled with the ongoing recession and the prepayment of retiree health benefits, has created a situation the Postal Service has never faced — the need to adjust its entire infrastructure to prepare for significantly less mail volume.

Why are we adjusting our infrastructure?

-- The Postal Service lost $8.5 billion in Fiscal Year 2010 — that equates to losing more than $23 million EVERY single day of the year.
-- Mail volume has declined by 43.1 billion pieces in the past five years — from an all-time high of 213 billion in 2006 to 170 billion in 2010.
-- The Postal Service is doing everything possible to reduce costs and save money — this will involve consolidating operations wherever possible.
-- In FY 10, the Postal Service cut spending by $3 billion, bringing total cost savings over the last three years to $10 billion.
-- By consolidating operations, adjusting delivery routes and restructuring administrative and processing functions, the Postal Service is adapting to meet the evolving needs, demands and activities of our customers.
-- Don’t look at the Postal Service and see only brick and mortar Post Offices with the flag pole in front of the building:
o Look online at usps.com.
o Look at the USPS app on mobile devices.
o Look at other retail outlets — grocery stores, office supply stores and pharmacies.
-- The Postal Service of the future will be smaller, leaner, and more competitive. But it will continue to drive commerce, serve communities, and deliver value.
-- As a self-supporting government enterprise, the Postal Service receives no tax dollars. It relies solely on the sale of postage, products and services to pay for operating expenses. Revenue generation is a matter of business survival.
-- As a familiar and trusted presence across America with highly recognizable products and services, and the largest distribution system in the nation, the Postal Service is seizing opportunities to generate new revenue