We’ve been writing a lot lately about the Postal Service’s financial woes, and I thought a few graphics might illustrate why it’s in such a tough position.
First, mail volume since 2000. You’ll notice that First-Class and Express mail volumes have dropped significantly; Standard Mail has increased modestly:
The Postal Service’s revenue figures (adjusted for inflation) paint a similar picture. First-Class Mail revenue has slipped about 10 percent since 2000 — higher rates have prevented a bigger drop — and Standard Mail revenues are up slightly. You see why First-Class Mail is so important, though: An extra 10 billion pieces of Standard Mail only translates to $2 billion in added revenue.
Finally, here’s how the “mail mix” has changed from 2000 to 2008:
First-Class Mail used to account for half of the Postal Service’s mail volume. Now it’s dropped below that mark — for the first time since the Postal Service started keeping track.
