MTAC Fall ’24 Meeting Recap
Welcome to Deets with Doug! I am Doug Gamroth, Senior Director of Postal Strategy at American Litho. I’ll do my best to bring you industry news and developments to keep you well informed on national postal gatherings.
Standing room only on day 1 of the final MTAC meeting for 2024! With election mail updates taking center stage, this was the last time anyone without an MTAC membership badge could attend.
Membership Change: Why the Shift?
There are a couple of theories about the new restrictions:
- Optimistic view: Public questions were taking valuable time from industry professionals.
- Practical view: PMG DeJoy prefers to avoid public misinterpretations and out-of-context quotes creating unnecessary backlash.
This allows the PMG to stay focused on DFA2—the latest iteration of the Delivering for America plan. DFA2 emphasizes:
- Bigger, more efficient facilities
- Fully loaded trucks
- Renovating older facilities
- Adjusting service level agreements
- Reducing wasteful spending
Election Mail and USPS Autonomy
The USPS has committed to a 99% on-time delivery for election ballots. However, USPS remains under pressure from elected officials, especially in rural areas, to maintain consistent delivery speeds for bills and other critical mail—even with new service adjustments.
PMG Metrics of Note
- 28,000 new vehicles deployed (20,000 gas-powered, 8,000 electric)
- All vehicles include A/C (per NALC union request)
- Mail Carrier Union agreement includes:
- 4% hourly wage increase over the contract term
- Retroactive COLA adjustments
- 600 delivery points remain disrupted due to hurricane damage
The State of Paper
The paper industry is currently balanced between supply and demand, but disruptions are always possible. Union strikes at U.S. ports could tip the scales, highlighting the need for more automation—something unions resist to protect their influence. While another “paper-mageddon” seems unlikely, vigilance is essential.
DFA: Equipment & Process Modernization
USPS Challenges:
- Poor maintenance
- Disjointed layouts
- Multi-story workspaces
- Insufficient dock space
- Misaligned equipment
The USPS aims to standardize facilities across the country. Atlanta is an example of progress, reducing daily intra-campus trips from 614 to 300 after reorganization.
They plan to right-size facilities and employ the Matrix Conveyor Solution (MaRS) for larger facilities and the Paired HOPS Solution for smaller ones. Standardizing processes and layouts will make operations more efficient—but finding suitable buildings remains a challenge.
Service Standard Update
- No changes for destination entry products (Standard class mail)
- Hour-level adjustments (instead of day-level) for First-Class and USPS Ground Advantage to improve plant-to-plant efficiency
Projections
- $36 billion in savings over 10 years
- 6% of mail will experience a downgrade (one extra delivery day for areas beyond 50 miles of an RPDC)
- 83% of market-dominant mail won’t be affected
- 11% will see a service upgrade
Safety Update
Brendan Donahue, Assistant Postal Inspector in Charge, shared updates on Project Safe Delivery to address rising theft and ensure mail carrier safety.
Key Metrics:
- Robberies surged from 64 in 2020 to 601 in 2023
- Arrow keys (used to access blue mailboxes) have a street value of $5k–$10k
- 38,000 e-locks installed to reduce the value of arrow keys
- “Hot” areas include Chicago, Los Angeles, Queens (NY), San Francisco/Oakland, and parts of Ohio
- $10mm/week, $500 million/year lost in fraudulent postage
Looking Ahead: MTAC and USPS Promotions
The next MTAC meeting will be closed-door on January 14th, 2025.
Meanwhile, USPS expects the 2026 promotions to mirror 2025, meaning now is the time to plan for meaningful promo participation. Stretch your direct mail budget by taking advantage of USPS postal optimization programs and promotional discounts.
In Summary: Key Takeaways for Direct Mailers
As USPS implements DFA2 and service adjustments, direct mailers should monitor these changes closely to maintain delivery timelines and stay competitive.
- Proactive planning: Align campaigns with USPS timelines and promotions.
- Optimize budgets: Use USPS programs to improve ROI.
Reach out to American Litho to explore how our postal optimization programs and promo strategies can help you exceed forecasts and stay ahead of service changes.
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