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GCA Releases Report On Postal Service's Essential Role In American Economy

Friday, July 25, 2014

Press release from the issuing company

Washington, D.C. – Today, the Greeting Card Association (GCA) released the following report commissioned from NDP Analytics, to coincide with the 239th birthday of the Postal Service (July 26, 2014). The paper analyzes the integral role the Postal Service plays in the economy and the negative consequences that would result from cutting essential services or raising rates.

"This report by NDP Analytics provides in-depth information demonstrating how integral the Postal Service is to our everyday lives and the greater economy,” said Rafe Morrissey, GCA Vice President of Postal Affairs. “Amid all of the talk about reform, policymakers, stakeholders, and the general public need to understand the importance of this institution and how vital it is we ensure that any reform strengthen, not weaken, its future growth.”

Full Report

Summary of findings:

• The USPS has built a deeply rooted infrastructure to service everyone at every corner of the country that no other service provider can create or maintain at its current size and scope. This infrastructure supports a U.S. mail industry that is highly interdependent, in which private sector carriers rely on the Postal Service for final deliveries.

• Amid discussions about cutting essential services such as six-day delivery, the report finds that by reducing mail delivery and pick up services from six days to five days (a 16% operational reduction), the USPS will create bottlenecks and delays of communications, payments, and shipments for American consumers and businesses.

• Additionally, First-Class Mail accounts for the largest share of USPS total revenues, averaging 46.3% of total revenues over the last six years. First-Class Mail is also the largest profitable segment for the USPS.


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