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Re: Showdown at the Post Office

By: clo in POPE | Recommend this post (0)
Thu, 08 Sep 11 3:21 AM | 101 view(s)
Boardmark this board | (The) Pope's for real stock market report 		Msg. 42828 of 65535
(This msg. is a reply to 42825 by ribit)
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What Economic Recovery? U.S. Postal Service problems having domino effect on Corporate America

Posted on September 6, 2011 by Aaron Hutchins|

Some people don’t think much of the USPS (United States Postal Service), many people, including main stream journalists, don’t know that the USPS does not get any taxpayer money! How about the fact that dozens of U.S. and European corporations rely on the USPS for business?

I’m not talking about shipping their products. Corporations actually have major contracts to provide the USPS with products or services. Now they’re feeling the pinch of the collapsing USPS budget. 


Here’s a list of major companies being directly affected by the problems at the USPS: Fed Ex, Siemens, Northrop Grumman, Pat Salmon & Sons and Campbell-Ewald, to name a few.

Fed Ex is the biggest contractor with the USPS, in 2010 they were paid $1.4 billion for their service to the USPS (that’s only 3.5% of Fed Ex’s total revenue): “FedEx values its alliance relationship with USPS, both as a supplier and a customer.”-Maury Donahue, FedEx spokeswoman

Northrop Grumman made $495 million off their USPS contract.

The German company Siemens made $135 million in 2010: “We’re affected by their budget and their spending, It causes us to react and adjust.”-Daryl Dulaney, CEO of the Siemens Industry division New York

Siemens was involved with mail processing equipment, until this recent announcement by the USPS: “…will not be buying mail processing equipment, period.”-Sue Brennan, USPS spokeswoman

Privately held Pat Salmon & Sons trucking made $143 million in 2010. 


Shipping contractors, like Fed Ex and Pat Salmon, have been hit hardest by the USPS budget crisis. According to David Hendel, with postal contracting specialist Husch Blackwell LLP, the USPS is asking truckers to essentially work for half pay: “If the contractor will not agree to this, the Postal Service is threatening to terminate their contract.”

The only company that seems to be making more money off the USPS budget crisis, is advertiser Campbell-Ewald. The USPS has poured money into an advertising campaign trying to promote their service.

Basically the U.S. Postal Service wants to end Saturday mail delivery, cut 220,000 jobs by 2015 and close at least 3,700 post offices. As you can see the cuts will affect far more than just Postal employees and customers.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by Congress, not the USPS), and other products they sell. The cuts being made to the USPS will have no affect on U.S. government debt.

http://www.blindbatnews.com/2011/09/what-economic-recovery-u-s-postal-service-problems-having-domino-effect-on-corporate-america/7126




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The above is a reply to the following message:
Re: Showdown at the Post Office
By: ribit in POPE
Thu, 08 Sep 11 2:18 AM 		Msg. 42825 of 65535

snapits
...ups and fedex and that other one whatever it is don't have to deliver unprofitable routes. The Postal service do. What these folks want to do is scrape the gravy off the top, leave all the losers to the post office and talk about how incompetent the gubmint is. (I generally agree with that) What I think we should do is sell the profitable routes to the privately owned companies (like the airwaves) and use the money to fund the unprofitable routes handled by the usps.

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