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Postal Service facing shortfall crisis

The U.S. Postal Service has saved millions of taxpayer dollars in recent years through a number of lay-offs and efficiency maneuvers, but its austerity measures may not be enough to prevent a looming cash shortfall and possible credit default, thereby harming private marketers' web-to-print, mailing software and direct mail programs.

David Williams, vice president of Network Operations, told a House subcommittee this week that the realignment of postal facilities and size reductions of more than 110,000 career positions have helped save some $12 billion for the federal government.

However, if Congress doesn't act on legislation regarding pension payments and retiree health funding, the service may be forced to default on legislatively mandated payments to the government.

"The Postal Service knows how to cut costs, streamline our excess processing network and make the necessary changes to bring our organization further into the 21st century," Williams told the House Committee on Oversight and Government Reform.

"More than 90 percent of mail-related jobs are in private companies of all sizes," he added. "The success of these firms and their millions of employees depend on a healthy and thriving Postal Service."