DMA Urges Congress to Pass Postal Reform

Businesses Want Successful Legislation

Sep 27, 2006, 01:00 ET from Direct Marketing Association

    WASHINGTON, Sept. 27 /PRNewswire/ -- As negotiations continue in
 developing a conference agreement on postal reform legislation, the Direct
 Marketing Association (DMA) is calling on members of the House and Senate
 to make sure final legislation is passed before the 109th Congress
     "Making sure that the US Postal Service remains an efficient and
 effective channel for communications is tremendously important for the
 continuing health of America's economy," said DMA President & CEO John A.
 Greco, Jr. "Cooperative, nonpartisan efforts have brought about the
 greatest chance for reform in recent years. Now is the time to bring this
 to closure."
     As the mailing community works with members of the House and Senate to
 forge a compromise bill, DMA continues to support final legislation that
     *  Eliminate the escrow account for the over-funding of pension and
        healthcare costs
     *  Reverse the current policy on postal retirement costs for military
     *  Place a hard cap on rate increases
     *  Encourage worksharing discounts and negotiated service agreements
     "Even in today's complex, multichannel landscape, mail remains an
 important tool for business communications. From sending marketing
 materials, to mailing billing statements to meeting fulfillment
 requirements, it would be hard to find a business that does not rely on the
 Postal Service to communicate with current and potential customers," added
     Over the past five years, First Class mail volume has declined by more
 than 5.5 billion pieces, while the 6.6 million new residential and
 commercial delivery points have been added to the Postal Service workload.
 Periodic rate increases and a steady growth in standard mail volume have
 provided the Postal Service with the revenue it needs to stay financially
     But if commercial mailers continue to be faced with frequent and
 unpredictable postage increases that far exceed the rate of inflation, DMA
 and its member companies will be forced to seek more cost-effective means
 of reaching out to customers. If marketers turn away from the mail as a
 tool of communications, the ability of the Postal Service to deliver
 reliable, universal service to homes and businesses nationwide could be in
     The success or failure of the postal service will have a ripple effect
 on the rest of the economy. Across the country, approximately $900 billion
 in commerce and more than 9 million jobs -- including more than 700,000
 USPS jobs -- depend upon the success or failure of the Postal Service. As
 well, businesses forced to pay higher costs for billing and fulfillment
 mail would pass those costs along to consumers.
     The reforms provided in the current legislation (S. 662 and H.R. 22)
 will allow the Postal Service to continue to provide the services that
 businesses and consumers need at rates they can afford. Financial reforms
 will allow the postal service to make better use of its revenue stream, and
 operations reforms will allow the USPS to be more flexible and responsive
 to the needs of today's changing communications landscape.
     More information on postal issues is available online at
     About DMA
     The Direct Marketing Association ( is the leading
 global trade association of business and nonprofit organizations using and
 supporting multichannel direct marketing tools and techniques. DMA
 advocates industry standards for responsible marketing, promotes relevance
 as the key to reaching consumers with desirable offers, and provides
 cutting-edge research, education, and networking opportunities to improve
 results throughout the entire direct marketing process. Founded in 1917,
 DMA today has more than 4,800 corporate, affiliate, and chapter members
 from the US and 50 other nations, including 54 companies listed on the
 Fortune 100.
     In 2005, companies spent an estimated $161 billion on direct marketing
 in the United States. Measured against total US sales, these advertising
 expenditures generated an estimated $1.85 trillion in increased sales in
 2005, or 7 percent of the $26 trillion in total sales in the US economy
 (which includes intermediate sales). All together, direct marketing
 accounted for 10.3 percent of total US GDP in 2005.
     The Power of Direct: Relevance. Responsibility. Results.

SOURCE Direct Marketing Association