ALEXANDRIA, VA (April 9, 2003)- Recent Congressional approval of legislation to correct overpayments by the U.S. Postal Service (USPS) to the Civil Service Retirement System should significantly benefit US printing firms, particularly those involved in direct mail and USPS delivered publication printing. This legislation should eliminate postal rate increases until 2006 according to the USPS. The Printing Industries of America (PIA) played a major role in lobbying Congress to act quickly.
The USPS has stated that without this legislation, postal ratepayers would ultimately be forced to overpay $78 billion into the Civil Service Retirement System. It acknowledges that, as a result of this effort, postal rates should remain stable until 2006.
Dr. Ron Davis, Chief Economist of PIA, stated, “Based on historical relationships between postal rate increases and corresponding decreases in direct mail advertising volumes, these actions could easily generate $2 billion in direct mail printing alone through 2006. Additional benefits would accrue to other print sectors that rely on mail delivery such as magazine printing and envelope printing. This is a significant “stimulus package” for US printers and should provide a boost to both industry sales and profits over the next three years.”
According to Paul Reilly, CEO of Mail-Well, “This legislation should benefit our customers, suppliers to the mailing industry and the postal system. No postage rate increases for at least two years will provide the necessary conditions for our customers to invest further in mailing activities.”
For additional information on the PIA’s postal reform efforts, contact Ben Cooper at 703.519.8115 or [email protected]