ALEXANDRIA, VA---The Mailing & Fulfillment Service Association's (MFSA) current Chairman of the Board, Michael Murphy, president of Japs-Olson Company of Minnesota, presented testimony before the Subcommittee on Federal Workforce, Postal Service, and The District of Columbia of the Committee on Oversight and Government Reform, U.S. House of Representatives on July 30, 2009. Mr. Murphy was part of the second panel of three, who provided the subcommittee with valuable insight into some of the issues the mailing industry faces while working with the Postal Service and how the actions of the USPS affect the mailing industry.
Mr. Murphy went on to say, "First and foremost, we are economic partners with the Postal Service. Our customers and clients need a cost effective and efficient postal system to get their products and messages to their customers. With that in mind, we believe it is important that the Postal Service have the complete support of Congress to manage its retail, processing, and delivery networks efficiently, and to scale its infrastructure, including processing facilities, delivery routes, and retail stations and branches in proportion to its business needs. We believe this is also consistent with the intent of the postal reform legislation passed by Congress in 2006."
Advertising mail volume is down 22 percent compared to the same period in 2008. This is consistent with the percentage of advertising reduction evident in print media. A similar drop has occurred in the volume of correspondence and transaction mail, which is a major contributor to postal revenue. In many cases, companies that were significant customers of the Postal Service have closed or have been acquired. In addition to fewer companies using the USPS, mail originators have found less expensive alternatives to hard copy mail, and their use of those alternatives likely will continue after the recession eases.
Mr. Murphy went on to add, "As tempting as it is to manage the Postal Service through the political process, our company and MFSA members urge Congress to allow the leaders of the Postal Service to do their jobs, and to manage their public institution with the same goal of efficiency as that of private industry. The Postal Service's Board of Governors, the Postmaster General, and the agency's senior executives must be given the latitude to make the decisions necessary to return the postal system to profitability. Those decisions include the necessary measures, such as restructuring retail, processing, and delivery networks, that are essential to cost control and, in turn, postage rate control and volume growth."
Michael Murphy's full testimony and more photographs are available upon request, please contact Bill Stevenson at BStevenson@MFSAnet.org.
Mr. Murphy went on to say, "First and foremost, we are economic partners with the Postal Service. Our customers and clients need a cost effective and efficient postal system to get their products and messages to their customers. With that in mind, we believe it is important that the Postal Service have the complete support of Congress to manage its retail, processing, and delivery networks efficiently, and to scale its infrastructure, including processing facilities, delivery routes, and retail stations and branches in proportion to its business needs. We believe this is also consistent with the intent of the postal reform legislation passed by Congress in 2006."
Advertising mail volume is down 22 percent compared to the same period in 2008. This is consistent with the percentage of advertising reduction evident in print media. A similar drop has occurred in the volume of correspondence and transaction mail, which is a major contributor to postal revenue. In many cases, companies that were significant customers of the Postal Service have closed or have been acquired. In addition to fewer companies using the USPS, mail originators have found less expensive alternatives to hard copy mail, and their use of those alternatives likely will continue after the recession eases.
Mr. Murphy went on to add, "As tempting as it is to manage the Postal Service through the political process, our company and MFSA members urge Congress to allow the leaders of the Postal Service to do their jobs, and to manage their public institution with the same goal of efficiency as that of private industry. The Postal Service's Board of Governors, the Postmaster General, and the agency's senior executives must be given the latitude to make the decisions necessary to return the postal system to profitability. Those decisions include the necessary measures, such as restructuring retail, processing, and delivery networks, that are essential to cost control and, in turn, postage rate control and volume growth."
Michael Murphy's full testimony and more photographs are available upon request, please contact Bill Stevenson at BStevenson@MFSAnet.org.
