Trends in Print and Mail

The US Postal Service (USPS) is in financial trouble. The decline in mail volumes has accelerated in the last year. At the same time, the USPS is losing market share in the package shipping market. Aging facilities and vehicles hamper efficiencies. Congress appropriated billions for electric vehicles and charging stations, but that will only cover a small percentage of the investment needed. 

The response from the USPS is to raise rates – aggressively. The current plan is to raise rates twice a year, in January and July. The January rate increase will be based on the Consumer Price Index (CPI-U) and the July increase will be CPI-U plus factors for mail density and retirement payments. This tactic is driving down mail volumes at the fastest rate since the Great Recession. 

Production inkjet presses. File-managed processing with job and piece level tracking. Seamless acceptance for full-service Intelligent Mail barcode mailings. Artificial intelligence extracting information from inbound paper documents.

Implementing just one of those solutions is a challenge. Taking advantage of the capabilities of those technologies requires transforming digital and production workflows. In most cases, print and mail professionals will need to venture far outside their comfort zones.

When I started as a mail clerk in the early 1980s, postage meters were clumsy mechanical devices. We’d use a fan scale to determine postage, and then turn dials by hand to set the amount. For postage refills, I’d pack the meter into a plastic case, and lug it to the post office .With a check in hand, wait in line for a window clerk, who would break the lead inspection seal, reset the meter, attach a new seal, and hand it back.

I was a mail center supervisor when “postage by phone” refills were announced, and scales were integrated with the meters. Several years later, electronic information-based indicia (IBI) meters became mandatory. Meters were then connected to the internet, allowing for remote monitoring and management. Instead of static slugs, users could add digital messages using their meters.

It seems that every day, there’s a news story about hackers stealing customer information from a computer system. Most publicized cases involve large companies being hacked for credit card information and passwords for millions of people. Small companies are hacked too, but those stories don’t seem to grab as much attention.

Physical mail is fairly secure and is protected by federal laws enforced by the US Postal Service Inspection Service (USPIS). With a heritage that traces back to Benjamin Franklin, the USPIS aggressively pursues criminals who use the mail to attach or defraud victims. Companies and individuals put great trust in a sealed envelope marked “First-Class Mail”.

In the past, creating transactional mail documents was performed by companies using internal systems. Printers were directly attached to the mainframe computer system. The mail services department was in the same building, if not in the same room. There were tight controls from data to print to insert to delivery to the post office.

The technology used in the print and mail industry is changing rapidly. Every year, equipment speed and capability is improving. It’s challenging to buy for the present and keep an eye towards the future. So how do we solve today’s issues and prepare for tomorrow’s needs?

There are 4 key principles to follow when buying and planning:

As my clients know, I’m a fan of Dr. Atul Gawande, the surgeon and writer. At one point in almost every engagement, I hand the manager a copy of Dr. Gawande’s The Checklist Manifesto – a book that explains the importance and effectiveness of using checklists. If pilots and doctors can use checklists to prevent errors, so can we who work in the print-mail industry.

I recently read one of Dr. Gawande’s earlier books – Better: A Surgeon's Notes on Performance. He shares his lessons learned as a young intern, the struggles encountered as a volunteer dispensing vaccine in India, and his thoughts on accountability. The decisions we make every day impact ourselves and our professions.

At a time when the U.S. Postal Service (USPS) is struggling with declining volumes, someone at that organization has decided that one answer is to create additional restrictions on what could be mailed at Marketing Mail rates.

On July 6, 2018, when the Trump Administration announced tariffs on certain goods from China, the media focused on steel and aluminum – essential components of manufacturing. The tariffs actually were applied an entire group of products – detailed on a 28-page list available on the United States Trade Representative (USTR) website. The impact goes beyond automobiles and motorcycles, including equipment used in the mailing industry.

Roaming through a used book store, I came across "Writing with a Word Processor" by William Zinsser. Written in 1983, the book chronicles Zinsser teaching himself how to use an IBM Displaywriter – one of the first office word processors. More than just a look back to the adoption of modern technology, the book provides some insight to what we can expect in the future – less paper.

My bank gave me a choice – receive my monthly statement online, or pay a fee for a paper copy. For my car loan, the interest rate would be a point lower if I accepted automatic withdrawal and online notices. My utility company prints a request on every bill – and envelope – to pay electronically. As a consultant, I’ve seen several clients in these industries replace physical mail with digital documents.

One industry that has trailed on the move to digital has been healthcare – both providers and payers. Challenges include systems integration, member and patient preferences, and of course, federal and state regulations. Due to interpretations of the Affordable Care Act, many healthcare companies saw an increase in their volumes of physical mail beginning in 2013.

Until recently.