mail use by region source: USPS OIG
Declining First-Class Mail (FCM) volumes pose a major financial challenge to the U.S. Postal Service because FCM contributes by far the largest proportion of revenue to the Postal Service’s bottom line. Between fiscal years 1995 and 2013, FCM single-piece volume dropped by 61 percent. But a close analysis of the decrease reveals significant variations in this decline by geographicarea. In some areas, for instance, the percent of volume lost was even greater than 61 percent, but in other areas, it was almost zero. Additionally, the rate of decline is slowing or has stopped even in many of the areas that have lost the most mail volume, suggesting a new base level of demand for FCM has been reached in those regions.
As the Postal Service plans for its future, it must keep in mind that the needs of its customers vary at least as widely as these differences in mail volumes. Strategic planning designed around average mail volume data will inevitably result in inefficient solutions because there is no average mail customer. The Postal Service’s success will depend on developing a strategy that recognizes all of its customers, including in areas that have lost significant amounts of mail volume and those that have lost little or no mail volume. FCM volume data makes it clear that there are still many customers across the country that rely on the Postal Service to meet their needs. If the Postal Service works to maintain FCM’s reliability and usefulness, it can avoid alienating its remaining customers and exacerbating future volume declines.
This paper examines variations in FCM single-piece volumes by region and across various demographic groups and represents a modest but important first step in developing an understanding of their causes. Follow-up work examining mail trends on the destinating side, studying data on additional demographic factors, and tracking mail volume data at a more granular geographic level will further develop this body of knowledge. A clear understanding of the causes of regional variations in mail volume will enable the Postal Service to better address variations in customer demand, helping it improve its services, guide development of new products, and increase its revenue.
This area of study has other implications as well. The Postal Service’s universal service obligation requires the Postal Service to supply a base level of service nationwide, but varying levels of demand may complicate the determination of proper service levels. On the other hand, improved knowledge of these levels of demand can inform efforts at network rationalization, helping them to correspond with changing mail volume. It would also help the Postal Service to prioritize the allocation of resources and infrastructure, allowing the Postal Service to serve its customers as efficiently as possible. Such steps will be critical to meeting the future needs of customers and continuing to maintain the finances necessary to support the nationwide Postal Service network.
A close look at mail volume data reveals that the Postal Service still has many customers who rely on its services and makes it clear that there are significant regional differences in mail volume usage. Additionally, even as mail volumes decline, certain groups consistently use the mail more than other groups do. Even in areas where mail volumes have declined the most, they appear to be bottoming out at a minimum level in most regions, indicating that a new base level of demand might remain even with all of the factors that have caused it to decline.
If r o double g ran the blue instead of dumping it for the next guy this could have been different
Do not count on FCM volume stabilization to continue. The recent decimation of delivery standards and reliability are certain to mobilize additional customers to find alternatives to first class mail.
When you allow billing to be sent standard mail , all is lost !
amazing some areas haven’t changed considering the sobotaging of service and delivery.
Yes but do you believe what the usps tells you? These numbers just like dois and daily volumes that are fabricated on a daily basis are probably garbage as well.
Post Office better act fast and accurate in Aiming on Parcel Service and the things people pay for fast services! Drop the junk mail its way pass outdated.