The other day I read an interesting article about the United States Postal Services current money problems.
Here are some of the problems that they are facing.
- Projected annual loss of over $9 billion dollars.
- Annual losses expected to reach $20 billion dollars by 2015.
- Need to contribute a $5.5 billion health care payment by September 30, 2011, yet don’t have the cash to do so.
- Mail volume down 26% in the last four years.
While part of the problem is technology driven, the government in the last few years hasn’t done them any favors either. The postal service is one of the few governmental agencies that has to pre fund its retiree benefits, and it has to the tune of $21 billion over the last three years.
It will be interesting to see if Congress will allow the postal service an extension on the September 30, 2011 payment. The better approach would be for Congress to take this opportunity and allow the postal service to take the steps it needs to get its revenue and cost structures in line with the current economic realities.
If your business or household were faced with similar problems would you maximize this opportunity to right the ship or waste it?
