Understanding Postal: USPS Faces Unprecedented Economic Stress

Like many businesses, the USPS is experiencing financial stresses unlike any in the past. This includes a $751 million net income loss in January, compared to a $44 million net income loss for the same period in 2008. Total mail volume declined by more than 16 percent during that time.

The volume of flat-sized pieces, such as catalogs, being mailed is at its lowest point since 1997, with a decline of 7.6 billion pieces since 2006. As a result, the USPS had to revise deployment plans for the Flats Sequencing System equipment, which processes and sorts catalogs and other flat-size pieces into delivery point sequence.