Mailing Systems Technology September/October 2026

MUST-SEE BOOTHS AT PRINTING UNITED. PAGE 27 SEPTEMBER - OCTOBER 2026 MailingSystemsTechnology.com

THE INKJET CONVERSATION HAS SHIFTED: THE NEW CRITERIA FOR INVESTMENT. PAGE 8

NEXT-LEVEL INTELLIGENT MAIL BARCODES: WHAT YOU NEED TO KNOW. PAGE 20

DECIPHERING THE USPS’S FINANCIAL OUTLOOK. PAGE 24

THE WILD WEST OF OUTSOURCED PRINT & MAIL:

Why Most Organizations Have No Idea What They’re Really Paying.

PAGE 18

See You There!

O T E E R E IB H R K C C I CL SUBS

TABLE OF CONTENTS

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SEPTEMBER-OCTOBER 2026 | VOLUME 39 ISSUE 5

DEPARTMENTS

22

05 Editor's Note Looking Ahead

By Amanda Armendariz

06 Real-Life Management Employee Wellbeing: A Priority for Success!

By Wes Friesen

08 Inkjet Info

The Inkjet Conversation Has Shifted: The New Criteria for Investment

24

By Karen Kimerer

11 PCC Corner

Why Join a Postal Customer Council (PCC)?

By Suzi Oswald

12 The Trenches

Selling Outcomes: Rethinking How You Talk to Internal and External Clients

FEATURES

By Mike Porter

18 The Wild West of Outsourced Print & Mail: Why Most Organizations Have No Idea What They’re Really Paying

By Adam Lewenberg

20 Next Level: Intelligent Mail Barcodes

By Lisa Bowes

24 Deciphering the USPS’s Financial Outlook

By Kathleen J. Siviter

14 Postal Insights

Hearing but not Listening

By Leo Raymond

28 Our Annual Wage & Operations Survey: Part One

SPONSORED CONTENT

By Amanda Armendariz

27 Must-See Booths at PRINTING United Expo

22 What Do Rising USPS Costs Mean for Mail Strategy?

By Sy Green

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SEPTEMBER-OCTOBER 2026 | MailingSystemsTechnology.com

SUBSCRIBE FOR FREE! EDITOR’S NOTE

VOLUME 39, ISSUE 5 MAGAZINE STAFF President Chad Griepentrog Publisher Ken Waddell Editor Amanda Armendariz amanda.c@rbpub.com Contributing Writers Lisa Bowes, Wes Friesen, Sy Green, Karen Kimerer, Adam Lewenberg, Suzi Oswald, Mike Porter, Leo Raymond, Kathleen J. Siviter Audience Development Manager Rachel Chapman rachel@rbpub.com Advertising Ken Waddell 608.235.2212 ken.w@rbpub.com Design Kelli Cooke

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LOOKING AHEAD

BY AMANDA ARMENDARIZ

A

s we head into the final quarter of the year, it’s natural to look ahead to the holiday mailing season. The end of the year is always a busy time for the USPS, with copious amounts of holiday packages and cards being sent, not to mention end-of-the-year catalogs and promotions injected into the mail stream by businesses. Add in the fact that this is an election year, with all the ballot and election mail you’d expect, and it’s clear that the upcoming mailing season is going to be a busy one.

While this busyness is a great thing for the USPS finances (which need all the help they can get), it also means that mailers need to ensure they’re planning ahead to avoid delivery delays or mishaps.

Especially given the recent reported closures of Postal Center International, the second-largest presort provider in the US, mailers will need to make sure they

have their ducks lined up in order to get their pieces to their customers in a timely and cost-effective manner.

And if some of your 2027 plans include purchasing new equipment for the mail center, you’ll want to be sure to attend PRINTING United, September 23-25. Not only is there a wide variety of educational sessions you can attend, there is also a phenomenal exhibit floor that you can peruse. The equipment showcased here is cutting-edge, and the solution providers are more than happy to chat with you and answer any questions you may have.

I hope to see you in Vegas!

As always, thanks for reading Mailing Systems Technology.

MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2026

5

REAL-LIFE MANAGEMENT

EMPLOYEE WELLBEING: A PRIORITY FOR SUCCESS!

BY WES FRIESEN

T

he wellbeing of employees is one of the most important drivers of success for all organizations — including the teams we help lead and serve! Employee wellbeing is the overall state of an employee’s physical, mental, emotional, social, and financial health. True wellbeing requires an integrated approach that recognizes employees as whole people rather than merely workers. Sadly, recent Gallup research found that only 34% of employees are classified as “thriving,” while 56% are “struggling,” and nine percent are “suffering.” Meanwhile, the World Health Organization estimates that depression and anxiety lead to about 12 billion lost working days each year, costing the global economy about $1 trillion annually in lost productivity.

Benefits of Wellbeing Wellbeing directly affects the performance of all our team members. When our employees feel healthy, supported, and valued, they are more likely to be engaged, motivated, and productive.

According to a study conducted by Towers Watson, the single highest driver of engagement is whether workers feel “their managers are genuinely interested in their wellbeing.” Recent Gallup research found employees who strongly agree that their organization cares about their overall wellbeing deliver better results than other employees.

Other studies and experts say that added benefits of employee wellbeing include:  Reduced absenteeism  Better customer service 6

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 Stronger collaboration and teamwork  Enhanced innovation and problem solving  Higher employee retention rates and it is easier to attract new employees.

I think this quote from Richard Branson applies, “Take care of your employees and they will take care of your business.”

Principles to Enhance Employee Wellbeing 1. Provide Positive and Caring Leadership. Leadership expert John Maxwell famously teaches that, “the success of any organization (team) rises or falls based on the quality of leadership.”

Those of us in leadership roles significantly influence employee wellbeing. The most effective leaders:  Model healthy behaviors.  Demonstrate empathy and compassion.  Support when people struggle with life’s challenges.  Encourage open communication.  Build trust.  Let people know you value them.  Are caring for the overall health of people they work with.

Executive Consultant George Stamatis counsels, “Care for your employees first, treat them with respect, empathy, and dignity, and they will care for your customers. When your team feels valued, loyalty, trust, and excellence naturally follow.” And the quote popularized by Zig Ziglar and John Maxwell applies, “People don’t care how much you know until they know how much you care.”

2. Build Strong Relationships.

Healthy workplace relationships matter.

We can help strengthen relationships by modeling the showing of appreciation, and practicing the 3 Rs of Recognition, Rewards, and showing Respect. We can encourage teamwork, collaboration, and social connection among our team members. And it’s ok to periodically take a little time to have some fun together, such as having the team select a fun activity (e.g. bowling, miniature golf, going to a park, playing a game during a staff meeting, fun competitions, attending a movie or another event — just ask your employees for ideas!). Another proven method to build relationships is to “break bread” together — we all like food, don’t we?

3. Foster a Positive Workplace Culture. For our team members to thrive, we must intentionally and consistently pursue a positive workplace culture. One important piece of the culture we need is psychological safety. Psychologically safe workplaces are characterized by a shared belief held by members of a team that it’s OK to take risks, to express their ideas and concerns, to speak up with questions, and to admit mistakes — all without fear of negative consequences.

As Harvard University expert Amy Edmondson puts it, “it’s felt permission for candor.”

We can also make sure we have no “stupid rules” that frustrate people and waste time and effort. How does your team feel about the rules? Ask them: Are the rules clear and applied to everyone?

Are there any unnecessary rules you think we can eliminate? We can also encourage friendships at work. Meaningful connections are vital to psychological, emotional, mental, and physical health; loneliness has negative downsides.

4. Ensure Reasonable Workloads.

We need to avoid burning out people by unreasonable workloads and infringing on their work-life balance. To promote wellbeing, we need to encourage employees to take vacations, use flexible scheduling and hybrid work where possible, and keep healthy boundaries between work and personal life. We can also model healthy boundaries by avoiding sending out emails and texts outside of normal work hours (unless necessary).

5. Invest in Learning and Development. Harvey S. Firestone once said, “The growth and development of people is the highest calling of leadership.”

How can we help grow and develop our people? We can provide opportunities

SUBSCRIBE FOR FREE! for training — on the job, cross training, webinars, seminars, and in-house and college classes. We can offer mentoring, coaching, and career advancement opportunities. Having people taking part in professional organizations (like PCCs) and conferences shows we value them and can foster development. One idea to consider is to collaboratively develop with each team member an annual development plan, specifying specific development activities.

6. Prioritize Mental and Emotional Health. We should create an environment where a person is allowed to have a bad day and asking for help or patience is safe. The Industry Consensus newsletter put it this way, “An environment where people feel safe to say, ‘I am struggling’ is an environment where people thrive.”

Being flexible to allow occasional mental health days will be appreciated and promote mental health. We can take advantage of our organization’s Employee Assistance Programs (EAPs), counseling resources, mental health training, and stress management support.

7. Encourage Physical Health and Wellness. CEO Paul Drechsler said,

“Good health IS good business” and I agree. There are a variety of ways to encourage the physical health and wellness of our team members. We can partner with Human Resources or other external parties and offer fitness programs, health screenings, healthy lifestyle education, and ensure we have ergonomic workplaces. How about bringing in some basic exercise equipment and having a place for people to workout during their breaks and non-work time?

Or encouraging people to take walks, stretch, and just move during break times? We can also support healthy eating habits by having healthy choices in vending machines and having healthy choices when bringing in food for team events.

8. Support Financial Wellbeing. If employees have financial problems, it will harm their overall wellbeing and can hurt their performance at work. We can help our employees take advantage of retirement planning and financial education resources and compensate team members as generously as possible.

9. Listen and Act on Feedback. I am a big proponent of embracing the philos-

ophy of continuous improvement, and I bet you are too! We can pursue trying to improve employee wellbeing by listening to and acting on feedback. We can conduct surveys, focus groups, and feedback sessions to understand what employees are feeling and hear their suggestions for improvements.

Closing Thoughts: Employee wellbeing is one of the most important investments an organization can make and is important for the success of our teams and overall organization. Bottom line: When employees flourish, our teams flourish, and we all benefit!  Wes Friesen (MBA, EMCM, CMDSM, MCOM, MDC, OSPC, CCE, CBF, CBA, ICP, CMA, CFM, CM, APP, PHR, CTP) is a proven leader and developer of high-performing teams and has extensive experience in both the corporate and non-profit worlds. His book, Your Team Can Soar!, has 42 valuable lessons that will inspire you and give you practical pointers to help you — and your team — soar to new heights of performance. Wes can be contacted at wesmfriesen@gmail.com or at 971.806.0812.

MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2026

7

INKJET INFO

THE INKJET CONVERSATION HAS SHIFTED: THE NEW CRITERIA FOR INVESTMENT

BY KAREN KIMERER

E

very technology eventually reaches a pivotal moment that’s not necessarily a breakthrough, but a turning point. The early questions (Does it work? Can I trust it?

Is it ready?) begin to fade, because they belong to the pioneers. For everyone who follows, the questions become more practical and ultimately more valuable: How does this fit into my operation?

Where does it create the greatest return?

What will it mean for my business three years from now?

Even so, many buying conversations haven’t fully caught up. While vendors continue introducing faster presses, broader substrate support, and higher image quality, those capabilities have become expected rather than differentiating. Evaluating inkjet primarily by specifications risks missing the larger opportunity.

This matters because capital investments are no longer won simply by selecting the fastest or highestquality device. Competitive advantages increasingly come from choosing the right applications, customers, and business models that enable inkjet to create measurable value. Organizations that are focused only on technology comparisons 8

SEPTEMBER-OCTOBER 2026 | MailingSystemsTechnology.com

may overlook where the strongest growth opportunities exist. So, what questions should buyers be asking now?

New research from Keypoint Intelligence, based on nearly 100 North American print operations, provides a clear answer. Today’s buyers are approaching production inkjet with a fundamentally

different mindset — one that’s driven less by proving the technology and more by determining where it delivers the greatest business impact. That shift is now evident throughout the industry, from conversations on the trade show floor to investment decisions that are being made inside print operations across the US and Canada.

The Conversation Has Changed Not long ago, the question on every buyer’s mind was whether inkjet could hold its own against toner and offset. That debate has largely been settled. For a growing number of operations, inkjet has moved past “emerging alternative” and into something more straightforward: an established production platform.

That shift is the foundation for every purchasing decision that follows.

Keypoint Intelligence’s newly published primary research report entitled PSPs’ Strategies, Operational Trends, and Investments reflect that maturity. Among the print service providers surveyed, 57% already operate a sheetfed production inkjet press in an A3/B3 or B2 format, and 38% have roll-fed inkjet running in production. These aren’t pilots or test installations; they’re live, revenuegenerating platforms sitting alongside the technologies that continue to anchor the production floor. Meanwhile, 69% still operate mid-production A3 toner devices and 54% maintain sheetfed offset

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presses. The production environment hasn’t been replaced. It has been layered.

Equally telling is who these companies are. Survey respondents represented established commercial operations averaging 35 full-time production employees and, among PSPs, projected mean 2025 revenues of nearly $14 million.

These aren’t early adopters chasing the next shiny thing, but seasoned production leaders who have lived with inkjet long enough to understand its advantages, its quirks, and its place in a mixed-technology environment.

That experience changes everything about how they buy. The question is no longer whether inkjet belongs on the production floor. For most of these organizations, that decision is behind them. What comes next is the real focus: Maximizing productivity, expanding the application mix, and determining where the next capital investment delivers the greatest strategic return. If you’re planning your next tradeshow agenda around evaluating the technology itself, you may already be a step behind the buyers you’re competing against.

Growth Is Real, But It’s Becoming More Selective The growth story for production inkjet is alive and real, but it isn’t being written equally across the market. According to Keypoint Intelligence’s research, PSPs operating large-production color inkjet platforms expect color print volumes to increase by an average of 6.4% over the next three years. While most anticipated moderate gains, a meaningful segment expected double-digit growth. Only a small minority foresaw volume declines.

That’s a fundamentally optimistic outlook, but optimism, in this case, comes with an asterisk. (See Figure 1).

The strongest growth expectations aren’t spread evenly. They’re concentrated in higher-volume production environments where shorter run lengths, greater personalization, and improving crossover economics are steadily pulling work away from traditional offset. The operations with the most bullish outlook aren’t simply riding a rising tide. They’re positioned to capture work that’s actively migrating toward platforms that can handle it more efficiently.

For anyone walking a show floor this year, that distinction matters. The

industry’s growth narrative remains intact, but it is increasingly driven by organizations managing higher volumes and more complex workflows, and by a deliberate search for technologies that improve operational efficiency rather than merely replacing existing equipment.

Understanding which segment of that market you’re serving, or aspiring to serve, may shape your investment decisions as much as anything you see in a vendor demonstration.

Investment Dollars Tell the Bigger Story Volume expectations reveal confidence, but investment intentions reveal commitment. Using that measure, the research is hard to ignore. In the same Keypoint Intelligence study mentioned earlier, 85% of PSPs expected to invest in new production equipment over the next three years, with most planned purchases focused on digital technologies. Interest in traditional offset, monochrome production, and refurbished equipment was comparatively limited, signaling that this market is not simply maintaining the status quo but preparing for what comes next. That pattern reinforces a central point: Buyers are planning around capability and growth, not hesitation.

Mid-production toner remained the single most planned purchase, but the broader pattern is what commands attention. Collectively, large-production sheet-fed and roll-fed inkjet platforms accounted for a substantial share of planned investments and point to where established PSPs believe future growth

will occur. It’s worth noting that the survey skewed toward commercial producers rather than franchises and quick printers, which likely understated demand for lower-production toner equipment. But this also means that the data offers an unusually clear view of how larger, capitalintensive operations are thinking about the future (see Figure 2).

Respondents’ attention was increasingly focused on production-scale inkjet. That consensus isn’t coincidental; It’s where economics and growth opportunities converge. In that sense, investment intent and growth expectations are pointing in the same direction.

Buyers Have Redefined Value Perhaps the most revealing finding from the research isn’t what buyers ranked highest, but what they ranked lowest.

When respondents planning an inkjet investment were asked to identify their primary reasons for purchasing new equipment, improving productivity and automation topped the list, selected by 68% of participants. Replacing aging equipment followed at 50%, with expanding production capacity coming in third at 40%. Improving print quality, increasing uptime, and expanding into new applications all remained meaningful considerations. Reducing costs finished last, with only 16% identifying lower operating costs as a primary driver. The message is clear: Value now means productivity first (see Figure 3).

These findings are compelling, and they represent a genuine shift in how the MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2026

9

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 How does the press integrate with the workflow software and finishing equipment already in the plant?  What happens to throughput when the most experienced operator isn’t in the building?

These are the questions separating capable production platforms from truly transformative ones. The strongest technology demonstrations won’t just showcase impressive hardware; they’ll show you how technology changes the economics of your entire operation… not just the press itself.

industry evaluates production technology.

For years, inkjet conversations centered on cost-per-page economics, click-rate comparisons, and the math of replacing offset or toner more cost-effectively.

Those calculations haven’t become irrelevant, but they have stopped being the primary focus.

Today’s buyers treat cost savings as a baseline expectation, not a differentiator.

What they’re actually chasing is a different question entirely: How much more productive can this operation become? That shift helps explain why the discussion now moves beyond savings and toward output.

That reframing changes what “value” looks like in practice. Automation reduces touchpoints, intelligent workflows eliminate manual intervention, and faster makereadies increase throughput.

Consistent uptime viewed through a productivity lens isn’t really about maintenance at all. It’s about how much sellable work moves through the plant during a given shift. A press that runs reliably simply makes more money per hour. That’s a more sophisticated value proposition than cost-per-page ever was, and it’s where the most competitive operations are already competing.

Elevating the Conversation This shift should change the conversations you have with every production inkjet provider. Specifications still matter. Speed, image quality, substrate compatibility, ink technology, and total cost of ownership are legitimate evaluation criteria, and any serious vendor conversation will cover 10

SEPTEMBER-OCTOBER 2026 | MailingSystemsTechnology.com

them. They shouldn’t be your opening questions, though. They’re the floor, not the ceiling.

What comes next is the real focus: Maximizing productivity, expanding the application mix, and determining where the next capital investment delivers the greatest strategic return.

So start somewhere different. For example, you can ask:  How does the press reduce operator intervention throughout the production process?  How quickly does it transition between jobs without manual recalibration?  Does it handle color management and quality control automatically, and what does it do if something falls outside tolerance?

The Bottom Line Keypoint Intelligence’s research describes a market that has entered a new stage of maturity, and the implications extend well beyond the equipment that will be announced this year. The buyer takeaway is that the strongest decisions will come from evaluating inkjet as an operational strategy rather than as a standalone device. The clearer takeaway is that buyers are no longer asking whether production inkjet works; they’re asking how far it can take their business.

Investments remain strong, particularly among larger, higher-volume environments, but the conversation has moved beyond acquisition. The organizations that are pulling ahead aren’t just buying the right equipment, they’re getting more out of what they already own and making smarter decisions about what to add in the future.

Every technology eventually crosses the line from adoption to optimization, and production inkjet has already crossed that line. The organizations that recognize this won’t just leave the next industry event with brochures and business cards. They’ll leave with a clearer picture of where this market is headed and a stronger sense of how their next investment will position them to compete in it.  Karen Kimerer of Keypoint Intelligence has experienced the many challenges of expanding current market opportunities and securing new business. She has developed a systematic approach to these opportunities, addressing the unique requirements of becoming a leader in our changing industry.

PCC CORNER

I continue to enjoy attending industry events because they provide opportunities to:  Expand my knowledge  Build new connections  Reconnect with friends and colleagues

WHY JOIN A POSTAL CUSTOMER COUNCIL (PCC)?

BY SUZI OSWALD

W

hat are the benefits of being a member of a Postal Customer Council (PCC)? For me, the answer is both professional and personal — and it started early in my career.

Someone invited me to attend a PCC event. It was there that I began meeting and connecting with people who would play a key role in helping me grow my knowledge and skills in the mailing and shipping industry.

At the time, I often heard the term networking, but to be honest, it felt uncomfortable. Why would I want to introduce myself to people I didn’t know?

It was outside of my comfort zone, and something I wasn’t eager to do.

However, by joining a PCC and attending events, something changed. As I became more involved, I started building genuine connections with other members. Those connections opened doors

— when I encountered challenges or needed guidance, I had people I could turn to for advice and support.

Over time, something even more meaningful happened. As others got to know me, they began coming to me with their own questions. I was able to share my knowledge and help them in return. Giving back is incredibly rewarding. There’s a name for that feeling — it’s called a “helper’s high.” When you help others, your brain releases chemicals like dopamine and endorphins, creating a real sense of happiness and fulfillment.

Another powerful benefit of PCC involvement is the relationships you build. What starts as networking often turns into genuine friendship. Throughout the years, I’ve developed lasting friendships with people across the mailing and shipping industry. These relationships are one of the most valuable aspects of being part of a PCC.

The key, however, is not just joining a PCC — it’s getting involved. Attend events. Be present. Be willing to introduce yourself to someone new. It may feel uncomfortable at first, but it gets easier — and the rewards are worth it.

Recently, I had the opportunity to meet a couple of young professionals at a PCC Mail Design Professional class. I was able to introduce them to Leaders Connect, a program designed to pair mentors and mentees in the mailing and shipping industry. Programs like this are excellent examples of how PCC involvement can open doors beyond your immediate network and help others grow.

PCCs are more than just professional organizations — they are gateways to growth, connection, and giving back.

They provide access to resources, education, mentorship opportunities, and a supportive community that benefits everyone involved.

Final Thoughts Joining a PCC is the first step — but the real value comes from participating, connecting, and contributing. Be willing to step outside your comfort zone, build relationships, and share your knowledge.

Before you know it, you’ll not only grow professionally — you’ll also find yourself part of a strong and supportive mailing and shipping community.

Suzi Oswald has more than 25 years of experience in the printing and direct mail industry.

Recognized for her dedication and strong work ethic, she is passionate about creating a positive, high-energy environment where individuals can learn, grow, and thrive.

In her role as Postal Affairs Expert and Policy Advisor at Enpointe in Minneapolis, MN, Suzi is committed to mentoring and empowering others, fostering collaboration, and driving excellence across every aspect of her work.

MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2026

11

THE TRENCHES

To change the sales conversation, you need to understand the mental model from which your clients operate. Marketing and customer experience leaders don’t think about cost-per-piece. They think of funnels, pipelines, and customer journeys. Their vocabulary includes: Customer Acquisition Cost (CAC): What it costs to convert a prospect into a paying customer.

Lifetime Value (LTV): The total revenue a customer is expected to generate throughout their relationship with the brand.

Churn Rate: The percentage of customers who stop buying or cancel in a given period.

Conversion Rate: The percentage of prospects who take a desired action after receiving a communication.

Journey Friction: Points in the customer experience where confusion, delay, or poor communication causes customers to hesitate, disengage or abandon.

SELLING OUTCOMES: RETHINKING HOW YOU TALK TO INTERNAL AND EXTERNAL CLIENTS Senior marketing

BY MIKE PORTER

T

he print and mail industry built its sales culture around tangible metrics like pages, pieces, and cost per thousand. These are numbers that operations depend on as internal measurements. But these same metrics often become the foundation of client conversations, even when they aren’t the most important thing to the customer.

Back in my service bureau days, our salespeople talked to prospective customers a lot about how we’d save them money by being more efficient or presorting their mail. This wasn’t always the pitch, but it was usually an important part of the conversation. Our salespeople would try to convince companies that we could do it cheaper. We had laser printers! We co-mingled mail!

When you anchor a proposal to the cost per piece, you position your operation as a commodity. You imply that your services are interchangeable with offerings from the shop down the street.

Clients naturally respond by shopping for the lowest bid. This applies whether your operation specializes in marketing

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mail, transactional documents, or both. A sales pitch that hinges on doing the same work for less money invites procurement to benchmark you against the cheapest vendor on the list.

The cost-focused issue still applies to in-plant operations, when the clients are internal marketing or communications departments. The in-plant that can’t express its contribution to campaign performance, customer retention, or other corporate objectives could be vulnerable to outsourcing arguments.

How Marketers and CX Leaders Think Senior marketing and brand leaders who understand the value of direct mail don’t view it as a line-item expense to be minimized. They see mail as a strategic asset for capturing attention, building trust, and strengthening brand relationships.

Transactional mail is a little different.

Most companies still look at bill production mostly as an expense. They continuously seek ways to trim costs any way they can. But if your operation can challenge that thinking, you’ll stand out among your competitors.

and brand leaders who understand the value of direct mail don’t view it as a line-item expense to be minimized.

Mailed communication plays a part in every one of these concerns, but only if your account teams frame it that way.

They might talk about retargeting via direct mail, for instance, or personalized graphics that convert more prospects into buyers or improve customer loyalty.

For transactional documents like a cellular bill, for example, you could include data-driven messages, such as calculated customer savings by converting to a different plan. Specific messaging like this connects directly to churn reduction and LTV protection.

The sales force must understand that a well-executed print/mail program is not a production cost. Whether it’s an acquisition campaign, an up-sell promotion, or a triggered re-engagement piece, every mail touch is an investment with a

SUBSCRIBE FOR FREE! measurable return. The job of an account sales team is to make that connection obvious in every proposal.

Discovery Questions That Reveal Business Outcomes The questions your salespeople ask a prospect signal whether you’re aiming to be a vendor or a partner. Shift your pre-proposal conversation from production specs to business outcomes with questions like these: “Which customer segments are you trying to reach that digital channels haven’t effectively converted?”

“How are you currently using your billing documents or statements beyond collecting payments?”

“What’s the typical lifetime value of the customers this document touches?

What would reducing churn by just one percent mean in retained revenue?”

“If we add personalized offers to statements based on account behavior, how would your marketing team want to track the response?”

These questions uncover items the client cares about and position you as

someone who thinks about their business, not just their mail job. Mail service providers who go beyond the “what” questions and get to the reasons “why” clients send mail create opportunities to advise on strategy, refine targeting, and add services that justify pricing above the commodity level. Ask what business problem the transactional document is supposed to solve, and you’ll find services like personalization, segmentation, or triggered offers that wouldn’t even be mentioned in a discussion about cost-saving.

Here’s an example of how a client conversation might go: Client: “We need to process a monthly billing run of 180,000 accounts. The bills have to be in the mail by the 15th of the month.”

Sales Representative: “We can do that, no problem, but can we spend 15 minutes with your marketing team? We can add personalized offers to the bills based on account behavior, such as customers who are near a plan threshold, customers who haven’t used a feature they’re paying for, or customers who’ve called service twice in 90 days. We can

track response rates by segment. Would it be worth testing?”

That conversation changes the whole customer relationship. The client’s billing team can transition from just a cost center to a customer retention organization.

Selling Outcomes = Selling Value Direct mail is no longer about volume.

It’s about value. Transactional mail is no longer just about payment collection; it’s about the customer relationship that exists between transactions. The print and mail operations that learn to quantify that value and speak the language of their clients’ businesses will earn relationships no price comparison can dislodge.  Mike Porter at Print/Mail Consultants and PMC Content Services creates content that helps attract and retain customers for companies in the mailing and document industry, and he assists companies as they integrate new technology. He welcomes questions from Mailing Systems Technology readers. Reach out to him at www.pmccontentservices.com. Follow @PMCmike on X, or send him a connection request on LinkedIn.

MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2026

13

POSTAL INSIGHTS

HEARING BUT NOT LISTENING

BY LEO RAYMOND

A

fter a June Congressional hearing, anyone reading the statements and hearing the comments by the Postal Regulatory Commission’s four commissioners has a thorough summary of the PRC’s perspectives about the Postal Service.

Collectively, their observations about USPS finances, operations, and service were not positive, and generally traced the source of their concerns to the 10-Year Plan initiated five years ago by then-postmaster general Louis DeJoy. Meanwhile, separately and not in a similar venue, the Postal Service submitted its formal request for additional borrowing authority and for reimbursement of previously unclaimed appropriations for public service obligations.

Circumstances aren’t fair to anyone in this case, neither the Postal Service nor the PRC. In one sense, the juxtaposition of these two events can be seen as illustrating a chronic and intractable behavior of postal management to do whatever it’s

decided to do and ignore what others are saying differently. However, it isn’t that simple.

The origin of these agencies’ charters is, of course, Congress, an institution not known for carefully crafted legislation that aligns its directives in one place with

ment Act, among others — that support their perspectives on each others’ authorities and obligations.

The Postal Service was set up as an independent federal agency, saddled with vague but significant public service obligations while also being expected to operate in a “business-like” manner.

Over the past 56 years, the inherent self-conflict of such a charter has become painfully clear.

Separately, the PRC was established to ensure that the USPS — with its monopoly powers yet operating in a commercial marketplace — did not exercise those powers through excessive prices or unfair business practices.

Inside the Postal Service, behaviors and decisions typically reflect an effort to do what it believes to be its charge — provide service while operating in a “business-like” manner. Accordingly, the PRC is often seen as interference and obstruction, an impediment to the USPS trying to do its job.

Across town, the PRC’s behaviors and decisions reflect its efforts to execute its legal obligations, restraining the Postal Service from monopolistic practices, preventing illegal competition with the private sector, and monitoring the appropriate provision of products and services to the public. Accordingly, the USPS often is seen as an overly ambitious if not predatory monopoly that requires strict controls.

Over time, this has fostered a fortress mentality at L’Enfant Plaza.

Because of the natural conflict between what it believes it needs to do and what it’s allowed to do, a somewhat myopic perspective has developed in which it sees itself as constantly having to play defense.

Institutionally, while it understands the statutes, it still sees the PRC and the mailing industry as opponents and unfair critics; it lacks a capacity, or willingness, to see itself as others see it.

In turn, it cannot or won’t consider the possibility that there might be something worth acknowledging in what “critics” are saying. It’s easier for the USPS executive team to circle the wagons and validate their own thinking than it is to risk the fabric of their policies by pulling on a thread of doubt.

Inside the Postal Service, behaviors and decisions typically reflect an effort to do what it believes to be its charge – provide service while operating in a “business-like” manner.

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those it issued elsewhere. As a result, both the PRC and the USPS can find passages in relevant statutes — from the 1970 Postal Reorganization Act and the 2006 Postal Accountability and Enhance-

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Conversely, and not without reason, this has led the PRC to see itself as the essential protectors of the ratepaying public against a stubborn and reckless monopoly that cannot be trusted to make decisions in other than its own self-defined interests, such as in prosecuting the 10-Year Plan.

On the one hand, it may be easy for the USPS to write off what industry observers say as parochial criticism by people more focused on advancing their own agendas. However, on the other hand, what the PRC states should not be so easily dismissed. The commission doesn’t issue off-the-cuff rulings or render its opinions without careful thought; it doesn’t take knee-jerk positions just to be adversarial.

Along the way, it’s important to recognize the roles of the lawyers behind the scenes. Never lacking for professional ego, there’s an understandable “shoe-wetting” contest always going on in which the legal teams at the USPS and PRC try to outdo each other in claiming the high ground. The influence these

legal shamans exercise over their clients — at the USPS or PRC — should not be underestimated.

Postal executives and PRC commissioners may set policy or issue decisions, respectively, but what is finally published likely will reflect filtration by the associated legal team and, in turn, may be more about establishing or defending positions than trying to reach common ground.

At the risk of using an oversimplifying platitude, everyone needs to start not just listening to each other better but hearing the underlying messages being delivered.

For example, aside from the reasons why, the Postal Service is saying it needs financial help if it’s to perform as expected.

As PMG David Steiner neatly captured the proposition, “tell me what you want me to do and how to pay for it.” Frustration arises at USPS HQ when there’s more attention to the causes of the situation than to the need for timely action.

At the same time, the PRC and others — in Congress and the industry — are saying that the 10-Year Plan has been disastrous for postal finances and service

and needs to be abandoned. Frustration arises when clear indicators of The Plan’s failure are ignored by its zealous advocates at the USPS. Thankfully, there may be one point of agreement around one very fundamental question: what is the Postal Service’s universal service obligation? If Congress can provide a clear definition, then the appropriate funding mechanisms can be developed. In turn, the USPS would not only have better guidance about what it’s expected to do but the confidence of an appropriate revenue stream and a starting point from which to re-solve other financial questions.

Regardless, the first step seems to be that the USPS admits the failure of the 10-Year Plan. Lowering that flag from the ramparts may well be the critical signal that it’s time for everyone to stop arguing and collaborate, starting with the USO.  Leo Raymond is Owner and Managing Director, Mailers Hub. He can be reached at lraymond@ mailershub.com. This information originally ran in the Mailers Hub e-newsletter.

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THE WILD WEST OF OUTSOURCED PRINT & MAIL:

WHY MOST ORGANIZATIONS HAVE NO IDEA WHAT THEY’RE REALLY PAYING

BY ADAM LEWENBERG

A

sk your CFO whether your organization is paying competitive prices for office supplies, freight, or cloud services, and you’ll likely find dashboards, procurement teams, and benchmarking tools dedicated to managing those expenses. Now ask the same question about outsourced print and mail services. For many organizations, the answer is surprisingly simple: Nobody knows.

As more customer communications have moved to third-party providers (including invoices, statements, marketing campaigns, compliance notices, and customer correspondence), outsourced print and mail has quietly become one of the largest unmanaged spending categories in many enterprises.

We often refer to it as the Wild West because unlike most procurement categories, outsourced print and mail often lacks centralized ownership, enterprise-wide visibility, standardized reporting, competitive benchmarking, and internal subject matter expertise.

The result is inconsistent pricing, missed USPS optimization opportunities,

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and organizations that may be overspending without ever realizing it.

The Wild West Has No Sheriff The biggest challenge isn’t that organizations use multiple print and mail providers; it’s that no one is responsible for managing the category across the enterprise.

Marketing hires one provider, Finance uses another for invoices and statements, and Human Resources outsources employee communications. Each department makes decisions based on its own needs, with little visibility into what other business units are doing. This problem gets bigger with multiple divisions and acquisitions.

Over time, organizations often lose the ability to answer fundamental questions:  How many outsourced print and mail providers are we using?  How much are we spending by application or business unit?  Are different departments paying different rates for similar work?  Are we using providers that specialize in the applications they’re producing?  Are we receiving competitive pricing?

Without enterprise visibility, meaningful cost management becomes almost impossible.

Every Provider Speaks a Different Language One of the biggest misconceptions is that outsourced print and mail providers can be compared simply by looking at print costs. They can’t.

Every provider invoices differently.

One may bundle programming, data processing, print production, inserting, transportation, postage, and storage into a single charge. Another may separate those same services into dozens of individual line items. Comparing those invoices becomes an “apples to oranges” exercise.

The solution is surprisingly simple but rarely done. Organizations need to create a common language by standardizing every invoice into consistent cost categories, such as:  Materials  Data Processing  Mail Automation  Printing  Mail Preparation

 Transportation  Postage  Digital Delivery  Data Storage  Miscellaneous Services Once invoices are organized into standardized categories, organizations can finally compare providers, identify pricing differences, and benchmark similar applications across the enterprise. Only then does meaningful analysis begin.

 Taking advantage of USPS promotions and incentive programs  Improving presort preparation  Optimizing transportation and USPS entry points  Increasing USPS automation levels  Improving address quality  Expanding digital delivery where appropriate

Bringing order to Benchmark Before You Negotiate the Wild West of Many organizations jump directly to negotiating lower prices. That is often the wrong outsourced print first step. Without benchmarking, there is no way to know whether current pricing is competitive or where opportunities and mail starts exist. Once costs have been standardized, organizations have three effective ways to with visibility. benchmark their providers:  Compare providers already being used internally. Many large organizations unknowingly use multiple vendors producing similar applications. These comparisons often reveal significant pricing differences.  Conduct a Request for Proposal (RFP). A standardized pricing template allows providers to quote the same services, making comparisons much more meaningful.  Work with an independent thirdparty expert. Specialists who understand production mail, USPS pricing, and industry benchmarks can often identify opportunities that are difficult to recognize internally.

The objective isn’t simply finding the lowest bidder. It’s understanding whether you’re paying market rates for the services being provided to help set a course for a new frontier.

The Biggest Savings Usually Aren’t on the Invoice One of the biggest surprises for clients is that the largest savings opportunities often have little to do with the prices charged by their outsource provider.

Instead, they come from how the mail is designed, prepared, and entered into the postal system.

Examples include:  Converting flats to letters when possible  Selecting the most appropriate USPS mail class

In many organizations, procurement teams negotiate production rates every few years but never evaluate whether the mailing itself is being produced in the most efficient way. Those operational improvements frequently generate larger savings than vendor price negotiations alone.

Why Similar Jobs Can Cost Very Different Amounts Unlike many procurement categories, there is no published market price for outsourced print and mail services.

Cost varies based on equipment and technology, cost of living at the production hubs, postal preparation methods, transportation strategies and how central the mailer is to your clients, application complexity, contract structures, value-added services, and the margins each provider is trying to achieve.

Two providers producing nearly identical customer statements may charge dramatically different amounts. Without benchmarking, organizations have little way of knowing whether those differences are justified.

Visibility Creates Leverage Once spending is standardized and reviewed across the enterprise, organizations begin asking much better questions.

Instead of asking, “How much did we spend with Vendor A?” they begin asking:  Why are different providers charging different rates for similar work?  Why are some applications still mailing as flats costing 70% more but have low page counts?

 Why aren’t USPS promotions being utilized?  Why are the postage rates so different between suppliers using the same mail classes?  Are we using the right provider for each type of mailing?

Those questions often uncover opportunities that have existed for years but remained hidden because no one had complete visibility.

Bringing Order to the Wild West Outsourced print and mail has become one of the largest unmanaged spending categories in many organizations, not because companies don’t care about costs, but because the category is fragmented across departments, providers, technologies, and mailing applications. There is often no central owner with the data, expertise, and authority to optimize it.

The organizations achieving the greatest long-term success aren’t simply negotiating lower vendor prices. They create enterprise visibility, standardize data, benchmark provider performance, and continually evaluate how mail is designed, produced, and entered into the postal network. The goal isn’t just lower invoices. It’s understanding what you’re buying, how it compares to the market, and whether every mailing is being produced in the most efficient and cost-effective manner.

Bringing order to the Wild West of outsourced print and mail starts with visibility. Once organizations have the right information, they can make better decisions, reduce costs, improve service, and finally gain control of one of the least understood and most overlooked spending categories in the enterprise.  Adam Lewenberg, CMDSS, MDC, is President of Postal Advocate Inc., the nation’s leading enterprise mail optimization and spend management firm. Postal Advocate manages the world’s largest portfolio of mail equipment, postage, USPS accounts, and outsourced mail service providers, helping some of the largest organizations in North America gain visibility and control over their mailing operations. Since 2011, the company has delivered more than $112 million in documented savings with an average 74% reduction in mailing-related costs for its clients. Postal Advocate is nationally recognized as experts on enterprise mailing strategy, postage optimization, mail technology, and outsourced print and mail operations. Adam can be reached at adam.lewenberg@postaladvocate.com.

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NEXT LEVEL:

INTELLIGENT MAIL BARCODES

I

n my last article for Mailing Systems Technology, I walked through the Intelligent Mail piece barcode from end to end — Barcode Identifier, Service Type ID, Mailer ID, uniqueness, Routing Code. If you missed it, visit MailingSystemsTechnology/RevisitingIMB. It is genuinely foundational.

This time, I want to take things up a notch. Consider this the graduate-level course. Because knowing the anatomy of an IMb is one thing. Using it strategically — squeezing every option out of it, managing it properly, and understanding the full suite of barcodes in the IMb family — is another thing entirely.

The IMb Is a Family Most mailers think of the Intelligent Mail barcode as the code on a mail piece. That 20

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is the piece barcode, and it is the one we spend most of our time talking about. But the full suite of Intelligent Mail barcodes includes three distinct barcodes: the piece barcode applied to individual letters, cards, and flats; the Intelligent Mail Tray barcode applied on tray labels attached to trays, sacks, and tubs; and the Intelligent Mail Container barcode applied to container labels or placards on handling units like pallets and APCs. These barcodes nest together. A container barcode rides above a tray barcode, which rides above piece barcodes.

Together they create an end-to-end picture of where your mail is in the postal system — from the time it leaves your dock to the time it reaches a carrier route.

Understanding how these barcodes nest is important for anyone managing

Full-Service compliance, because errors at any level can create problems that ripple through the whole mailing.

Service Type IDs: There Is More Than You Think I have written about Service Type IDs before, but I want to go deeper — particularly around some traps that catch even seasoned mailers off guard.

The main STID table covers First-Class Mail, Periodicals, Marketing Mail, Bound Printed Matter, and a few other categories.

What it does not prominently advertise is that there are STIDs that live outside of that main table entirely.

Secure Destruction STIDs for First-Class Mail, for example, are not included on the standard STID table. They are provided to you separately after you sign up for the

BY LISA BOWES Secure Destruction service. This is an incredibly underutilized option. USPS will securely destroy First-Class mail pieces that cannot be delivered — at no additional charge. For mailers sending sensitive documents like financial statements, medical correspondence, or legal notices, this is not a perk to overlook. If you are not using it, ask yourself why not.

Share Mail STIDs also do not appear on the main table. And there are STIDs specific to certain USPS promotions and incentive programs that only surface within the promotion guides themselves.

The lesson: the main STID chart is not the whole story. Be STID-savvy. Use PostalPro as your live reference rather than a printout gathering dust on your desk.

A Word About Political Mail and Ballot Mail With election cycles front of mind, it is worth addressing a common point of confusion: Political Mail and Ballot Mail are not the same thing, and the distinction matters when you are selecting a STID. Political Mail refers to material mailed for campaign purposes by a registered political candidate, campaign committee, commit-

tee of a political party, or a political action committee engaged in voter mobilization efforts. It is not its own class of mail — it moves as First-Class or Marketing Mail, and the appropriate STID reflects that.

Quality control on Intelligent Mail barcodes means translating the barcode, verifying the content, and matching it against what your mailing is supposed to do — before the mail enters the stream.

Once it is in, your options are very limited.

The Intelligent Mail barcode has been around long enough that many mailers are running on autopilot — using the same settings they set up years ago without revisiting whether those settings still make sense.

Managing Uniqueness: 45 Days Is a Floor, Not a Goal USPS requires that IMb uniqueness be maintained for 45 days. That is the regulatory minimum. But if you are mailing regularly — especially if you are running multiple jobs on a shared Mailer ID — 45 days is a tight window that leaves little room for error or exception. Building a longer uniqueness range into your process protects you from inadvertent duplication, especially in high-volume environments where multiple vendors or facilities may be drawing from the same Mailer ID. This is not complicated to solve, but it does require a deliberate process. Set your ranges thoughtfully, communicate across your production team, and consider extending your uniqueness window well beyond the postal minimum.

Ballot Mail is a subset of Election Mail, and only live ballots that may be used to cast a vote in an election qualify for Ballot Mail STIDs. For other election-related pieces — sample ballots, voter registration materials, polling place notifications, absentee applications — you use the STID appropriate to the mail class and services you need. Getting this wrong is not just a minor technicality. Using the wrong STID on election mail can have real operational and reputational consequences.

Readable Is Not Enough Here is something I see mailers do with the best intentions that can still get them into trouble. They scan their barcodes on the production floor, confirm they are scannable, and check the box. Readable equals quality. Mission accomplished.

Not so fast.

A barcode that scans perfectly can still be wrong. The content of the barcode is what drives what happens to that piece downstream. If your STID does not match the class of mail, your ACS data will not come back correctly. If your Mailer ID is wrong, your tracking data goes to the wrong place. If your uniqueness ranges overlap, you can lose visibility data and trigger postal compliance flags.

You Have Options. Use Them.

Forwarding for Marketing Mail (for a fee)?

Available. Time-based handling options?

Available. Electronic representations of forwarded or undeliverable pieces? Available.

Tracking via Informed Visibility at no additional cost? Available. Secure Destruction for sensitive First-Class mail at no additional cost? Available.

None of these require special technology or complicated setup. They require choosing the right STID. The Intelligent Mail barcode has been around long enough that many mailers are running on autopilot — using the same settings they set up years ago without revisiting whether those settings still make sense. In an era of rising postage rates and tightening margins, leaving value on the table is not a strategy.

Look at your STID selections. Check them against what you actually want to happen to your undeliverable pieces.

Evaluate whether your tracking is set up to give you the visibility you need. Ask whether you are using the ACS data you are paying for, or paying for data you are not using.

The barcode is one line of code on your mail piece. But what is encoded in that line can make a real difference. Lisa Bowes is Director of Postal Affairs and Product Insights at SnailWorks.

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WHAT DO RISING USPS COSTS MEAN FOR MAIL STRATEGY?

By Sy Green

T

he latest USPS price hike didn’t surprise anyone. At this point, the industry expects it. From annual adjustments to mid-single digits on average, sometimes even more depending on class and structure.

The drivers are well known: rising operational costs, structural pressures, and the need for long-term financial stability.

For years, transactional mail, such as billing statements, compliance notices, checks, and customer communications, has been treated as a fixed workflow. Files are generated, documents are produced, and mail goes out. It was predictable, reliable, and, for the most part, unquestioned.

But that model is starting to break down.

Navigating High-Volume Print from Routine to Choice When postage was lower, inefficiencies were easier to absorb. Extra pages, unnecessary inserts, outdated addresses, and redundant communications added cost, but not enough to force meaningful change. Those small inefficiencies were regularly buried inside broader operational budgets. Today, they are exposed.

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As postage increases accumulate, even incremental changes at two to four cents per piece, they translate into significant financial impact at scale. For organizations mailing hundreds of thousands, or even millions of pieces, that becomes a line item that gets considerable attention.

Finance, operations, and executive leadership are asking questions that historically stayed within production teams:  Why is this being mailed?  Can this be delivered digitally?  Is this the right format?  What outcome are we expecting?

That last question, what outcome are we expecting, is where things start to shift.

Mail is no longer automatic, it’s a decision.

Navigating From Automated Print to Deliberate Digital Acceleration Historically, the presence of a document in a system triggered print and mail.

That was the standard workflow. Now, organizations are evaluating each communication more deliberately. Not every document needs to be printed. Not every customer needs to receive the same ver-

sion. Not every message needs to go out on a fixed schedule.

At the same time, rising postal rates are accelerating something else entirely.

More companies are actively moving volume to digital and eBilling channels. When the cost of physical delivery increases, the return on digital delivery becomes more obvious. Faster delivery, lower cost per communication, and easier integration with payment platforms drive better visibility into customer engagement For many businesses, the question then becomes less about whether they expand digitally, and instead how fast they can do it without disrupting operations, customer experience, or value.

Exposing Waste in Legacy Mail Workflows Many transactional mail environments were built for throughput and consistency. They delivered that well, but they were often fixed in timing. These monthly cycles, static in design, were limited in personalization, and separate from digital workflows. As costs rise, those types of limitations become exposed.

is not to replace one with the other, it’s to use both more intentionally.

Aligning Print and Digital for Strategic Success Of course, rising costs are forcing discipline.

Not every customer gets every communication. Digital-first strategies are applied where possible, with print used intentionally. Page count, design, and weight are actively controlled to manage cost. Organizations determine when to use print, when to use digital, and when to combine both.

Efforts are made to move customers to eBilling where appropriate, thus reducing cost while improving efficiency. Delivery timing, digital engagement, and payment behavior are tracked and used to refine future communications. And the change is happening rapidly. This is a markedly different operating model than most organizations had just five years ago.

For service providers, expectations are changing. Clients want help managing both print and digital. They expect visibility into delivery and performance. They expect guidance on how to reduce cost while improving outcomes. For mailers, print and digital teams must align. Data and integration become more important. Customer communication is managed as a system, not a series of outputs.

Now organizations are starting to identify waste that used to be tolerated.

This can include mailing documents that could have been suppressed or combined, sending paper when a customer is already enrolled digitally, and producing extra pages or inserts that don’t change behavior. At the same time, they are realizing something important: eBilling and digital presentation. This allows for faster invoice delivery, earlier payment cycles, reduced call center volume, and improved customer visibility. But they also require integration, data discipline, and customer adoption strategies. That’s where many organizations are still catching up.

Physical Mail as a Premium Touchpoint The natural reaction to rising postage is to shift aggressively toward digital, and no doubt it’s happening. More organizations are pushing for eBilling adoption, emailing of statements, portal-based delivery, and SMS notifications tied to billing events.

Yet physical mail isn’t going away. In fact, it’s becoming more selective and more valuable.

For industries like government, utilities, financial services, and healthcare, physical mail still plays an essential role in compliance and legal notification, for legacy customers who are not fully digital, or sensitive communications and situations where delivery certainty is required.

What is changing is how it’s being used.

If it costs more, it must do more. Physical mail has become a premium touchpoint, used when it matters most, not just because the system generates it.

One of the biggest evolutions now is the blending of physical and digital strategies.

Digital channels have always been datadriven: open rates, clicks, conversions, and customer behavior. Print has not been. And that gap is closing. Businesses are starting to treat print and digital as part of the same communication framework by using data to decide which channel to use. This can look like tracking delivery timing for both mail and digital, or aligning outreach (email + paper + reminders). It can be measuring outcomes like payment timing or response.

This digital model handles speed, cost, and frequency, whereas print handles importance, compliance, and certainty. The goal

Blending Intentional Print with Digital Velocity Across the industry, the line between “printer,” “mailer,” and “digital provider” continues to blur. USPS pricing pressure isn’t going to go away. If anything, it will continue to push organizations toward more digital delivery and eBilling options.

But print isn’t disappearing either. The organizations that succeed will be the ones that move appropriate volume to digital, use print more intentionally, manage both channels together, and treat every communication as a measurable decision.

Mail used to be automatic. Now it’s a choice across both physical and digital channels.  Sy Green, MDP, MDC is Senior Vice President of Output Solutions at Usio. He began his career in the print and mail industry in 1986. During that time, he has gained experience in Printing, Data Management, Document Design, Process Integration, Mailing Services and Postal Regulations. He holds certifications from the US Postal Service as a Mailpiece Design Professional (MDP), and a Mailpiece Design Consultant (MDC). He is also a member of the Mail Systems Management Association (MSMA), Houston Chapter.

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BY KATHLEEN J. SIVITER

DECIPHERING THE USPS’S FINANCIAL OUTLOOK In March 2026, the USPS made headlines by announcing it was facing an imminent liquidity crisis and could run out of money within a year. The announcement sent shockwaves and consternation throughout the mailing industry as businesses considered what it would mean if the USPS ran out of cash. It also caused Congress to begin holding hearings to determine what, if any, changes need to be made to the Postal Service’s business model to stabilize its finances and ensure its existence in the future. Let’s take a deeper dive so readers can better understand the USPS’s short-term and long-term financial outlook.

First, a bit of perspective to consider. When you look at what the Postmaster General actually said, which was in his testimony to the House of Representatives on March 17, 2026, it was “[a]t our current run rate and if we continue to pay our required obligations in the same manner as we have done in recent years, then 24

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we will be out of cash in less than 12 months.” The important caveat to note in that statement is that the USPS would run out of cash if it continued to pay required obligations.

There have been many years in the past when the USPS did not pay its required obligations, but there was a rule made by the Postal Regulatory Commission (PRC) that required it to make minimum payments into its employee retirement accounts (in exchange for being allowed a Retirement additional rate authority in prior years). So this year, the USPS was unable to defer payment on its obligations and retain liquidity. Read on, however, because that has now changed…

Short-Term Outlook. The PRC recently provided the USPS a total of potentially $15 billion or more in relief through FY2030 and averted the USPS’s “liquidity crisis” in the near term by giving the USPS a waiver on paying the minimum retirement

payments until 2030. The PRC said its action offers some “breathing room” and extend any potential liquidity crisis for at least another several years, “providing the Postal Service makes judicious decisions about its expenditures starting now,” it told the House Subcommittee on Government Operations at a June 4, 2026, hearing.

Postmaster General David Steiner acknowledged this at the June 24, 2026, Senate hearing, stating in testimony, “[y]es, short-term deferring of employer contributions to retirement payments, and freeing up the use of restricted cash, has extended our cash liquidity projections.” “However,” he continued, “those actions do not make the Postal Service financially healthy or sustainable.” “The bottom line is that we are out of cash,” he said, “[w]e are borrowing from our employees’ retirement funds to continue operations... I am not comfortable with that,” he told the Senate, “our employees are not comfortable with that, and those of you in Congress should also not be comfortable with that.”

The USPS has not managed to achieve significant cost reductions – something that it should be more focused on at a time when it is having financial issues.

For the short-term, however, the USPS’s liquidity position is as stable — or better — than it has been many times in the past few decades. As of the end of April 2026 (according to the US Treasury), the USPS had about $9 billion in cash ($14 billion if you include the cash that was restricted for the retirement payments). Contrast that with the years between 2007 and 2013 when the USPS had less than $2.5 billion in cash (except for one year when it had $4.9 billion) at the end of each fiscal year. From 2014 to 2020, the USPS rarely had more cash than it does today.

Things changed in 2020 when the CARES Act gave the USPS $10 billion in relief during the pandemic, bringing its cash on hand to over $23 billion. But over the last five years, its cash on hand has been significantly depleted, largely through the USPS’s own actions of making historically high capital investments as it modernizes its network.

The Causes of the USPS’s Financial Issues. The USPS would like to blame its financial issues solely on the decline of mail volume and the few remaining constraints on its ability to continue to raise Market Dominant postage prices as much as it wants. But there are other causes that have led to its financial issues and liquidity challenges.

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The USPS spent a total of $12 billion on capital projects during the 10-year span of 2010-2020. During part of that period, the USPS froze capital spending to prioritize operational payroll. But since 2021, with the inception of its Delivering for America (DFA) plan, the USPS has spent $14.45 billion on capital investments and plans to spend another $15.6 billion in 2027-2030 (out of $40 billion projected for the 10-year DFA plan). FY2024 marked the highest annual capital investment in the USPS’s history, at $4.199 billion. So it’s easy to see how the significant increase in capital investments has impacted the USPS’s finances and liquidity position.

In addition, the USPS has not managed to achieve significant cost reductions — something that it should be more focused on at a time when it is having financial issues. The USPS earlier this year issued a freeze on all non-essential spending, but it remains to be seen what impact the move may have on finances for this Fiscal Year. An independent economic study submitted in a PRC proceeding earlier this year showed that if the USPS were to reduce its controllable costs by two percent per year, coupled with CPI-cap price adjustments, it would achieve break-even status and stabilize its finances by 2030.

There are other factors at play — since nearly 70% of the USPS’s costs are from labor, the size of the USPS’s workforce, types of employees, and productivity/overtime rates all have an impact on its expenses. The USPS’s productivity has fallen to historically low levels over the past few years. The significant decline in mail volume is also an important factor since the last time the USPS was able to cover its expenses was back in 20062007 when mail volumes were historically high. As volume has declined, it has impacted the USPS’s ability to use revenue to cover its expenses.

Long-Term Outlook. The long-term outlook for the USPS’s financial position is more of a concern because eventually the USPS will need to start making the required retirement payments again, and the USPS continues to lose money each year.

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SEPTEMBER-OCTOBER 2026 | MailingSystemsTechnology.com

The USPS’s losses since 2007 total $118 billion. It has maxed out its $15 billion borrowing authority. In addition, according to the GAO, OPM projects that the USPS Retiree Health Benefits Fund will be depleted in Fiscal Year 2031, assuming that the USPS makes all the required payments to the fund. After that, if no changes are made, the USPS will need to pay its share of retiree health premiums out of its revenue, which OPM estimates will be about $5.8 billion annually by FY2031.

In addition to its employee retirement expenses, the USPS must continue to provide all the things currently required by law, such as mail delivery six days per week, uniform postal rates anywhere in the country, the continual operating of unprofitable post offices, and delivering to expensive hard-toreach geographic areas.

Something needs to significantly change in order for the USPS to achieve financial stability in the long-term. As discussed above in the section on causes, there are multiple areas to be addressed to bring the USPS finances back in order: USPS cost reduction, reevaluation of USPS retiree benefits, and changes to capital outlays. Even if the USPS can achieve annual “controllable” income profit, the “noncontrollable” demands on its finances will keep it operating at a loss. The USPS also needs to be able to pay its statutorily obligated payments, which will significantly increase in the next six years.

There is much to consider when looking at the USPS’s future and the need for it to achieve financial stability. The answer likely will lie in multiple approaches — the USPS’s “self-help” initiatives to reduce costs, generating more revenue through its parcel products, and potential legislative changes that impact its retirement structure in the future or its ability to better invest the money in its retirement accounts — all are potential actions being discussed by stakeholders and Congress.

For a Really Deep Dive… As readers may realize, this article attempts to cover only highlights of the USPS’s financial outlook. There are other resources available that take a really deep dive — the Government Accountability Office (GAO) published a 75-page report in December 2025, “U.S. POSTAL SERVICE Action Needed to Fix Unsustainable Business Model.” The USPS Office of Inspector General in June 2024 published the 20-page audit report, “State of the U.S. Postal Service Financial Condition.” The PRC in May 2026 issued its 130-page annual report “Financial Analysis of United States Postal Service Financial Results and 10-K Statement” for Fiscal Year 2025.  Kathleen J. Siviter is the Executive Director of the Alliance of Nonprofit Mailers (ANM) as well as President of Postal Consulting Services Inc. (PCSi), and she has over 30 years’ experience in the postal industry. She has worked for the U.S. Postal Service, Association for Postal Commerce (PostCom), National Association of Presort Mailers (NAPM) and others. She has also worked with PostalVision 2020, an initiative designed to engage stakeholders in discussions about the future of the American postal system.

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OUR ANNUAL WAGE & OPERATIONS SURVEY, PART ONE

By Amanda Armendariz

I

truly appreciate everyone who completed this survey and allowed us to once again put together this comprehensive industry benchmark. I know that the questions require you to look up a lot of data, so we appreciate your willingness to share with us. Our readers look forward to this survey every year, and we wouldn’t be able to do it without you.

This year’s results were a mixed bag. Wages were down in most categories (especially with respect to mail center managers), but the number of people holding certain certifications increased slightly; always a good sign.

Take a look at these results and see how your mail center compares. Thanks again to everyone who participated, and we hope even more of you will be able to take the survey in 2027!

0% 0%

Number of Full-Time Employees Supervised

7% 14%

0-5 6-10 11-15 16-20 21+

79%

Unlike last year, none of the mail center managers from respondents’ companies manage more than 15 employees.

Mail Center Managers Certifications Held:

Male vs. Female

19%

61%

39%

This is almost identical to last year’s 60/40 split.

Average Salary and Time in Industry

USPS EMCM

SEPTEMBER-OCTOBER 2026 | MailingSystemsTechnology.com

6%

CMM

Slightly more people held the EMCM and CMDSM certification compared to last year, while the number who held the CCM went down by three percentage points.

The average salary was down significantly compared to last year. (It’s important to note that while we send out the survey to our entire subscriber database every year, it’s not always the same companies that respond, which could explain the significant difference between last year’s average and this year’s). The average time spent in the industry was 17 years, also a decrease from last year’s 19. Twenty-nine percent manage additional departments or functions.

28

10%

CMDSM

$55,416

17 Years

SUBSCRIBE FOR FREE!

Continuing Education 100 90

What types of training did managers have access to in the last 12 months?

80 70 60 50

50%

40 30

33% 29%

29%

20 14%

10

14%

0%

0

0%

0%

National mailing “schools”

Other non-mailing national conferences (i.e., management training courses)

None, didn’t find the time to attend

Local PCC conferences/meetings

Other non-mailing local conferences

None, training is not allowed for mail center managers

Online continuing education classes

None, no training needed this year

On-site continuing education classes

Other

Supervisors

Managers and the Economy

100

Fifty percent of managers reporting that the economy has had no effect on their positions is a decrease from last year, when 60% said the same. The number of managers taking on additional responsibilities was almost exactly the same as in 2025, but the number of managers who reported a salary freeze jumped significantly.

90 80 70 60% 50%

100 90

70 60 50 40

30

30 20

21% 14%

10 0%

Supervisors and the Economy

80

40

0

7%

None, due to budget cutbacks

NACUMS, Non-profit, DMA)

20

0%

Vendor’s user conference

National industry or association-specific mailing conference (MSFA,

50

0%

7%

National Postal Forum

PRINTING United Expo

60

14% 7%

60%

The economy’s impact (or lack thereof) held fairly steady compared to last year, and the number of supervisors who had to take on additional responsibilities dropped.

20%

20%

10 0%

7%

7%

0%

0

0%

0%

Has had no effect

Salary freeze

Has had no effect

Salary freeze

Took on additional responsibilities

Working additional hours

Took on additional responsibilities

Working additional hours

Salary concession

Number of mail managers decreased

Salary concession

Number of mail managers decreased

Other MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2026

29

The Lowdown:

The Economy and Non-Managerial Staff

} Among our respondents, only

a little more than half (54%) report having supervisors for the mail center.

} Of those that do have

supervisors, the gender breakdown is 2/3 male, 1/3 female, which is not too different from last year.

} When it comes to certifications,

17% hold the EMCM certification, but none held the CMDSM or CMM.

} The majority (60%) supervise

between one and five employees.

100

It’s encouraging to see salary concessions, salary freezes, and layoffs are at an all-time low among our respondents.

90 80 70 60

60%

50 40 30 20

20%

20%

10 0%

0

} The average pay of a supervisor

is $57,500, and average time spent in the industry is just under 10 years.

0%

0%

0%

Has had no effect

Layoffs

Salary concession

Existing staff work additional hours

Salary freeze

Existing staff do additional tasks Other

Average Wages of Mail Center Staff

Non-Managerial Staff

30 25

The Lowdown:

30

SEPTEMBER-OCTOBER 2026 | MailingSystemsTechnology.com

0 Entry-level

Inserter operators

Highest hourly wage

Mail handlers

Addressing machine operators

2024 - $17.58

2025 - $20.28

2026 - $18.30

2024 - $19.00

2025 - $19.95

2026 - $20.33

2025 - $19.73

2024 - $17.57

2026 - $19.23

2024 - $26.67

2025 - $26.65

5

2026 - $23.65

10 2024 - $17.55

} Of those who answered the question of whether their employees are represented by a union, not one person answered yes (it’s important to note, however, that a significant number of folks left this question blank).

15

2025 - $18.68

} The average number of years employed is 10.6.

20

2026 - $16.65

} The gender breakdown is 54% female, 46% male.