Postal Outlook Not Good, Nolan Says

Share this article:
WASHINGTON -- The state of business for the U.S. Postal Service is not good, and not getting better anytime soon, deputy postmaster general John Nolan told a packed crowd at a Mailers Technical Advisory Committee meeting yesterday.


"Volume and revenue are significantly down, and the prognosis is not particularly good for this year," he said. "All of us are in a mode to seek revenue, tighten the belt, ride out the storm and get ready for a turnaround when it occurs."


Nolan also reiterated comments made earlier this week at a Board of Governors meeting that the agency has done a good job reducing work hours by implementing automation equipment. The agency's overtime rates are 25 percent less than a year ago nationwide and considerably more than that in certain areas of the county, he said. Part-time hours, temporary hours and full-time positions also continue to decline.


In regards to mail irradiation, Nolan said the government has allotted $675 million to the postal service since Sept. 11 for anthrax-related expenses. The first $175 million has already been given to the USPS, where it is being spent on gloves, vehicles and for cleaning up the Church Street Station post office in New York.


As for the rest, Nolan said it "requires a specific, detailed plan from us about how we want to use it for the anthrax-related problems. We are planning to submit [a proposal to Congress] in the next couple of weeks."


While Nolan wasn't specific on what would be included, he said the agency is pushing for detection.


"We think it is the right way to go to protect our employees and the public," he said.


Chief financial officer Richard Strasser also told the group that the USPS' revenue for January was $5.05 billion, 5 percent below its expected figure of $5.3 billion and 3.5 percent below last year's numbers. However, that number was particularly strong, he noted, because it included the week before postal rates went up a year ago.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Direct Mail

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Direct Mail

Delivered: Coupon Mailers

Delivered: Coupon Mailers

What's in our mailbox this month: Coupons. See which ones are good deals—and which ones you shouldn't deal with.

Melissa Goes to Canada

Melissa Goes to Canada

Melissa Data adds Canadian change of address processing to its cloud-based NCOA service.

Delivered: University of Chicago Mailers

Delivered: University of Chicago Mailers

What's in our mailbox this month: University of Chicago mailers. See which ones make the grade—and which ones, not so much.