What are the Forces Behind Closing Post Office Buildings?

The local post office in many cases is the hub of rural communities and an important force in the explosion of e-commerce. What are the forces leading to their closure across the country?

The biggest proponent of downsizing buildings and slashing service is senior USPS management itself. The POStPlan introduced already has reduced retail mail service at more than 13,000 facilities and after October 2014, post offices will be re-evaluated annually to determine whether further cuts are necessary.

There are many political organizations, politicians and former members of the postal Board of Governors as well as competing delivery services that support USPS privatization and downsizing. These groups cite the USPS Office of Inspector General and the General Accounting Office to advocate downsizing postal infrastructure.

FedEx CEO Fred Smith testified before Congress that “closing down USPS … is an option that ought to be considered seriously.” However spokespeople for FedEx and UPS have said “it’s important to have a strong Postal Service.” USPS, FedEx and UPS in many instances already partner with each other in delivery services.

Pitney Bowes, a maker of postage meters and shipping software has funded a study for the National Academy of Public Administration (NAPA) to examine the benefits of partially privatizing the postal service. The study envisions private companies taking over all postal operations except the “last mile delivery” where a letter carrier would continue mail delivery.

The proliferation of email has in many cases impacted first class mail delivery, however email pioneer Vint Cerf of Google has stated; “I am convinced that until we get to the 24th Century, we are going to need the Postal Service as somebody to provide delivery services….”

All of the above indicate that changes are probably coming to the small rural post office in the years to come.

Sources: Association of United States Postal Lessors & PostandParcel.info