Quad Urges Congress to Act Swiftly to Restore Financial Stability to U.S. Postal ServiceFebruary 20, 2013
SUSSEX, WI—February 20, 2013—Quad/Graphics Chairman, President and CEO Joel Quadracci urges Congress to move swiftly to put the U.S. Postal Service (USPS) on a path to sustainability, noting that the $65 billion Postal Service is at the core of a $1.3 trillion mailing industry that provides family-supporting jobs for 8.4 million Americans, nearly 200,000 of whom live and work in Wisconsin.
Quadracci shared his insights on the importance of the U.S. Postal Service (USPS) to private industry and the U.S. economy at the Senate Homeland Security and Governmental Affairs Committee’s hearing on "Solutions to the Crisis Facing the U.S. Postal Service" on February 13. He was the only printer and member of private industry invited to testify.
"The Postal Service is the backbone for a large portion of the private sector and plays an integral role in our economy, extending across every type of mailer and the printing, paper and technology industries that supply them," Quadracci said in written testimony provided in advance of the hearing. "These businesses support services in a marketplace that include cost-effective advertising, magazines, catalogs, e-commerce and prescription drug fulfillment, as well as what is still a huge amount of statements, bills and greeting cards, and an expanding package delivery segment."
Quadracci believes ensuring the viability of the USPS is not a partisan issue and that Congress has the ability to not only save a proud American institution, but also support and promote a vibrant private sector.
The businessman's home state of Wisconsin is in a unique position with respect to meaningful postal reform as both its senators serve on the Homeland Security and Government Affairs Committee. In fact, Senator Tammy Baldwin (D-Wisconsin) met directly with Quadracci following the hearing to better understand the importance of the Postal Service to the Wisconsin business community and the U.S. economy as a whole.
During his oral testimony, Quadracci said that while print is changing and will continue to evolve in our multichannel world, it is still an effective marketing and communications medium—and one that connects and integrates well with other media channels. However, as marketers lose confidence in the long-term sustainability of the Postal Service, they may choose to redirect their marketing spend to other channels. "The uncertainty is there and they’re not sure what to do," he said of marketers who are seeking the best channels for maximizing response rates and revenues. If postage costs begin to outweigh the benefits from increased response, for example, marketers may move away from printed mailings to other media channels, he explained. "The competition is real and it is out there," Quadracci told the committee.