A Cost-Benefit Analysis of the Viability of U.S. Postal Service Retail Centers in Marquette County, Wisconsin

Report prepared for the Center for the Study of the Postal Market, December 21, 2010

McKinney Austin, Byron Deluke, Isaac Eagan, Dan Kleinmaier, Paige Muegenburg, and Bickey Rimal

“The United States Postal Service (USPS) is facing a fiscal crisis. Between 2007 and 2009, the USPS has amassed losses of nearly $12 billion. Further, it is predicted that in 2010 the USPS will operate at a loss of approximately $7 billion; and when loan figures are taken into account this figure increases to $13 billion. The drastic reduction of USPS use by the public because of substitutes such as email, along with rising costs associated with future pension and insurance payments for retired employees, requires immediate action to mitigate this crisis. Three alternatives are considered in this cost-benefit analysis: 1) maintain the status quo, 2) close the Post Office facility in Packwaukee, Wisconsin, and 3) close the Packwaukee location and replace with an Automated Postal Center (APC). We recommend closing the Packwaukee location and replacing it with an APC.”