United States Post Office Locations
This five-part report examines the United States Postal Service (USPS) in terms of its business performance and post office locations. The first section highlights insights related to the current state of USPS in terms of business performance. The remaining four sections provide the total number of USPS locations currently operating in the 23 states listed in rows 5-27 of the attached spreadsheet.
United States Postal Service Business Performance
USPS has experienced declining package shipping and mail volume despite an increase in its overall operating expenses. One reason the agency has seen a decline in volume is Amazon's entry into the last-mile shipping market. An explanation for increased operating expenses is rising employee payroll and benefits costs. This section describes each of these insights with supporting evidence from trusted media sources and industry journals.
- Amazon recently launched its own shipping service to the detriment of USPS and its competitors. Up until 2018, "USPS [was] Amazon’s largest carrier" and handled 62% of its package deliveries. Even before Amazon entered the last-mile delivery market, critics have claimed that USPS was selling its services to the e-commerce giant for much less than they are worth.
- Amazon's shipping service extends beyond its own merchandise. It also offers shipping options for non-Amazon deliveries. According to Morgan Stanley, Amazon "could be handling 1.5 billion to 3.5 billion non-Amazon packages by 2022" making it a direct competitor of USPS and other logistics companies.
- This is relevant because of the dramatic effect that Amazon's logistics network is expected to have on last-mile shipping market leaders like USPS. In 2018, USPS handled 6.2 billion shipments in the US. Amazon handled 2.6 billion US package deliveries in 2019, and that number is expected to reach 6.5 billion by 2022.
- In 2019, USPS saw a 1.6% decline in first-class mail revenue and a 2.7% decline in first-class mail volume. It expects mail volume to drop an additional 18% by 2024.
- Stamps.com ended its exclusive partnership with USPS in early 2019 in direct response to Amazon's entry into the shipping market. Its stocks initially fell following the decision, but prices have since "rocketed" due to what experts call "the Amazon effect."
- According to Forbes, USPS saw its package shipping volume drop substantially over the last two years while Amazon "is now handling about 4.8 million packages a day."
- Business Insider reports that although it has been "hemorrhaging" money for the past several years, this is the first time in nearly a decade that USPS saw its package shipping volume drop. It cites Amazon's growing logistics network as the main reason for this decline
Employee Benefits and Payroll
- USPS reports that "retirement pensions and retiree health care make up 35% of its personnel costs" with these expenses continually rising year over year. It currently supports more than 600,000 retirees.
- The agency is required to "estimate [its] future liability over a 75-year period" and set aside funds to budget for retiree pension plans and health care needs. Due to ongoing financial struggles, USPS has defaulted on many of these required payments. It currently faces "$120 billion in pension and other post-employment unfunded liabilities."
- This is relevant because USPS reported $21.2 billion in operating expenses during the first quarter (Q1) of fiscal year (FY) 2019, which is a 7.9% increase when compared to Q1 of FY 2018. A 2019 USPS press releases attributes "increases in compensation and benefits of $657 million" as a driving factor behind its rising operating costs.
- An ongoing class-action lawsuit against USPS claims that the agency fired nearly 44,000 injured employees to avoid paying them disability compensation. While USPS denies the allegations, it has noted that it may ultimately be forced to pay roughly "$178 million in potential liabilities for pending employment claims."
- The Trump administration has suggested that cutting postal employees' pay and benefits — along with shipping price adjustments, reduced delivery frequency, and outsourcing — could save USPS $98 billion over the next ten years.
- USPS has projected that it could run out of money to fund retiree health care by 2030 without government intervention.
US Post Office Locations by State — 1
This section provides the total number of USPS locations currently operating in Arkansas, California, Colorado, Connecticut, and Delaware. All findings are included in rows 5-9 of the attached spreadsheet.
Summary of Findings
- Arkansas has 577 total USPS locations.
- California has 1,049 total USPS locations.
- Colorado has 385 total USPS locations.
- Connecticut has 229 total USPS locations.
- Delaware has 55 total USPS locations.
US Post Office Locations by State — 2
This section provides the total number of USPS locations currently operating in Florida, Georgia, Hawaii, Idaho, Illinois, and Indiana. All findings are included in rows 10-15 of the attached spreadsheet.
Summary of Findings
- Florida has 455 total USPS locations.
- Georgia has 605 total USPS locations.
- Hawaii has 73 total USPS locations.
- Idaho has 229 total USPS locations.
- Illinois has 1,184 total USPS locations.
- Indiana has 674 total USPS locations.
US Post Office Locations by State — 3
This section provides the total number of USPS locations currently operating in Iowa, Kansas, Kentucky, Louisiana, Maine, and Maryland. All findings are included in rows 16-21 of the attached spreadsheet.
Summary of Findings
- Iowa has 832 total USPS locations.
- Kansas has 580 total USPS locations.
- Kentucky has 691 total USPS locations.
- Louisiana has 460 total USPS locations.
- Maine has 434 total USPS locations.
- Maryland has 389 total USPS locations.
US Post Office Locations by State — 4
This section provides the total number of USPS locations currently operating in Massachusetts, Michigan, Minnesota, Mississippi, Missouri, and Montana. All findings are included in rows 22-27 of the attached spreadsheet.