USPS Adviser: Postal Service Can't Compete Without Rate Hikes

Share this content:
WASHINGTON -- Rising costs and falling income have the U.S. Postal Service on its heels, Larry Speakes, senior adviser to the U.S. postmaster general, told nonprofit executives yesterday at the 11th annual Direct Marketing Association Nonprofit Washington Conference.


"We have a costly infrastructure that doesn't pay its own way, and we don't have the flexibility to change it," said Speakes, who was press secretary during the Reagan administration.


Congressional over-regulation, he said, has left the postal service incapable of dealing with increasing competition from the private sector.


He told conference attendees that the postal service's already announced plans to submit a rate case should happen this summer.


The postal service has cut 700 jobs at headquarters and a similar number in the field, he said, and has cut spending by one-third. It also is reviewing projects and programs and is cutting nonessential funding. But the service still will be "$2 billion-plus in the hole next year," he said. "It's an uphill battle to keep our financial heads above water."

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above