My research and knowledge of the mails business suggests that volumes have been steadily declining in traditional markets for several years now. The massive expansion of the public sector clouded the underlying trend of decline. If and when the pubic sector cutsback under a recession RM will see even further declines.
please aslo note that mail volumes are a good rpedictor of economic well-being or otherwise. It sugegsts to me that companies have not been advertising as heavily this Xmas due to tigthening of the belt, cutbacks on marketing campaigns. The anomally in all this is the continued high level of employment.
The banking sector is one of the largest posters of mail and their downturn will also impact on volumes going through mail centres.
RM has a wealth of information on volumes and trends, and in theory should be able to flex it's staffing levels to meet these adjustments
F0zz
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F0zziebear
- MYSTERY MAN
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Tman
- Posts: 4134
- Joined: 21 Oct 2007, 09:57
Re: re: Overall volumes propped up by the public sector
Every cloud has a silver lining; I reckon the likes of DHL, TNT and the rest may well leave the postal market earlier than intended if mail volumes decrease substantially."F0zziebear"]My research and knowledge of the mails business suggests that volumes have been steadily declining in traditional markets for several years now. The massive expansion of the public sector clouded the underlying trend of decline. If and when the pubic sector cutsback under a recession RM will see even further declines.
RM, if left alone, will be best placed to weather that particular storm.....
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Night Tonic
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Like most things - the electorate inevitably bear the brunt of major mistakes too.
It is a decline in profitable mail that we're suffering from. We're increasingly scrabbling around for business and whether we should be a public service or a fully fledged business we can debate forever, but as things stand, profits are and will continue to fall. We can scoff at our rivals but most of them do have better and faster machinery than we do. Its ok saying no one can beat us on deliveries but if theres not enough money in that alone, its a bit meaningless. That said, even if other operators only stake claims on major cities, its still a big chunk of business and I don't think we can be too complacent.
It is a decline in profitable mail that we're suffering from. We're increasingly scrabbling around for business and whether we should be a public service or a fully fledged business we can debate forever, but as things stand, profits are and will continue to fall. We can scoff at our rivals but most of them do have better and faster machinery than we do. Its ok saying no one can beat us on deliveries but if theres not enough money in that alone, its a bit meaningless. That said, even if other operators only stake claims on major cities, its still a big chunk of business and I don't think we can be too complacent.
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Tman
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I'd dispute that. None of the rivals have even a tenth of the automation we (RM) have all added together, and it's not networked either.We can scoff at our rivals but most of them do have better and faster machinery than we do.
When the ILSMs and Sequential Sorters etc arrive, they'll be that much further behind again. Fifty Far Eastern agency workers in a bleak industrial unit is no competition against those.
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Night Tonic
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