Pitfalls for the Private Sector
Federal government unaware it is
destroying private sector printers
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Not too long ago, 51 percent of everything printed ended up going through the mail. When the bulk mail rate went up, direct mail volumes went down in favor of online advertising and other less expensive forms of marketing. This changed print business dynamics. Not only did the USPS get itself into deeper financial trouble by reducing this major source of contribution to its overhead, but it hurt the print industry. Now, instead of printers utilizing 70 percent of their capacity on a day-by-day basis, the utilization figure dropped like a rock. In some cases, the capacity utilization is now 20 percent or less.
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William Gindlesperger
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