When I took office in June 2020, the situation at this cherished agency was catastrophic. When the pandemic began, accumulated losses approached $90 billion in total, with another $200 billion in losses on track by 2030. We had weathered it by suspending payments into employee retirement funds and deferring investments and maintenance in our facilities, vehicles and equipment. That left the Postal Service workforce ill-prepared to provide consistent, long-term service to the American people. This was well known inside Washington, DC, but there was no plan anywhere or from anyone to deal with this crisis.
Since taking over at the Postal Service, I have reassembled my team and worked with the Board of Directors to revive the organization and transform it into a viable organization for the future. Our 10-year plan, “Delivering for America,” released in March 2021, included an agenda to improve efficiency and accuracy, reduce costs, improve service, increase revenue, and create the right work environment for our employees. The plan identified legislative, regulatory, hiring and investment initiatives to reverse the decline and rebuild the Postal Service.
Three years later, our accomplishments are significant. We worked with Congress to pass postal reform, eliminating unfair financial burdens imposed on the Postal Service as a result of the Postal Accountability Act of 2006. We used our regulatory authority to make necessary price adjustments to correct more than a decade of pricing inadequacies. We converted approximately 180,000 temporary workers to full-time employment, stabilizing our workforce and providing long-term career opportunities for our employees.
By September 2023, 98% of Americans will receive their mail or packages within three days. Although performance has declined recently due to the challenges of overcoming deteriorating operating conditions while opening new facilities and renovating and repositioning existing facilities, we will soon return to performance levels that the public can be proud of.
Meanwhile, over the past three years, we have saved an estimated $2.5 billion annually by eliminating nearly 50 million work hours. This fiscal year alone, we have reduced transportation costs by nearly $1 billion while also significantly growing our revenue and expanding our market share in the package delivery business. We have already invested more than $15 billion to renovate our facilities, acquire new vehicles and equipment, and modernize our technology. These investments give our employees the tools they need to do their jobs in today’s business environment, where they must compete with powerful commercial companies for revenue. In the process, we rapidly deployed our people, technology and logistics know-how to package and deliver more than 900 million coronavirus test kits to people across the country in less than two days after they were ordered, affirming our role in the nation’s critical infrastructure.
As a result, we have reduced our projected losses over the next decade from more than $160 billion to $65 billion, and we are committed to eliminating the remaining losses over the next few years. Our progress clearly demonstrates the effectiveness of our plan, and it is essential that we continue on this path.
Delivering for America is the only comprehensive strategy that can save the Postal Service and empower this essential organization to not only survive but thrive. As we are now on this path, we call on voices that continue to advocate for the status quo to recognize that inaction has been proven to create a death spiral for the Postal Service. Our efforts will halt this decline and foster the organizational character that prepares the Postal Service for America today and will face the future. These self-help measures are essential to our operational and financial success. Waiting is not an option. Only by moving forward together can we build a modern Postal Service that can effectively serve the needs of Americans for generations to come.
