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PCI Introduces Strategies to Offset Impending USPS Rate Hike

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PCI Introduces Strategies to Offset Impending USPS Rate Hike
News

News

PCI Introduces Strategies to Offset Impending USPS Rate Hike

2024-07-16 00:28 Last Updated At:00:40

WESTON, Fla.--(BUSINESS WIRE)--Jul 15, 2024--

Postal Center International (PCI), an industry leader in mail solutions, is again proactively encouraging businesses to leverage its expertise to reduce the effects of the upcoming United States Postal Service (USPS) postage rate increase, which went into effect yesterday, July 14, 2024.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240715489794/en/

Last adjusted on January 21 of this year, the rates, according to the USPS, will see a 7.8 percent uptick. The cost of a First-Class Forever Stamp will jump to 73 cents, up from 68 cents, while one-ounce metered letters are to be bumped up by five cents to cost 69 cents. International Postcards and one-ounce letters will be increased by 10 cents to cost $1.65.

Ismael Diaz, President & CEO of PCI, reaffirmed the company's commitment to supporting clients during these challenging times. “At PCI, we understand the challenges that new rates can bring to your business. We are fully committed to our client-centric values and are here to support you every step of the way. Our dedicated sales team is ready to offer a complimentary assessment, providing personalized strategies and innovative solutions to help ease the financial burden of these rate hikes. Together, we can optimize your mailing practices and uncover opportunities for cost savings, ensuring minimal disruption to your business.”

Tom Roberts, Senior Vice President of Client Experience at PCI, emphasized the company's cost-savings expertise in commingling, mail presort, and mail automation solutions. "PCI’s advanced commingling and mail presort solutions, coupled with our state-of-the-art automation technology, have consistently yielded significant savings for our clients. We are dedicated to continuing this strategy and helping businesses streamline their mailing operations in light of the new postal rates."

The July 14 rate hike will be the sixth under the United States Postmaster General Louis DeJoy since 2022, who in November announced that the entity was set to lose $6.5 billion in 2023, underscoring the need for these adjustments. The rate hikes are part of the USPS’s ongoing 10-year Delivering for America plan to achieve financial sustainability and reduce its projected $160 billion in losses.

The USPS, an independent federal agency, serves every address in the United States, including protectorates and international military bases, ensuring the delivery of mail nationwide and beyond.

PCI remains steadfast in its mission to provide exceptional white-glove service and cost-effective solutions, ensuring that businesses can thrive despite rising postal costs. For more information on PCI’s solutions and how they can help offset the impact of the postal rate increase, please visit www.pcibrands.com or contact PCI’s sales team for a complimentary assessment on 800-430-7241.

About Postal Center International (PCI)

Postal Center International (PCI), a company deeply rooted in family values, was founded in 1984 by father-and-son entrepreneurs Luis and Arturo Echarte. Four years later, co-owner Susan Echarte joined the business, currently a leading print, mail, fulfillment, signs, and marketing solutions partner. Under the leadership of President & CEO Ismael Diaz since 2006, PCI has become renowned as one of the nation’s largest state-of-the-art transactional printing, postal, and mail processing solutions organizations. The company’s family of brands employs more than 560 associates, with annual sales of over $500 million, at its locations in the Southeast, Southwest, Northeast, and Midwest regions, with a footprint totaling 562K square feet. PCI delivers exceptional mail, print, signs, fulfillment, promotional, packaging, and marketing solutions for enterprise clients in industries such as banking, financial, healthcare, insurance, hospitality, and government nationwide. PCI is a HIPAA-compliant Certified Minority Owned Diverse Supplier at the state and national levels. It holds multiple security, sustainability, and quality certifications, including HITRUST CSF ®, TruSight, FDR, PCI DSS, SOC 2 (Type 2), FSC, SFI, PEFC, and G7.

Postal Center International (PCI) processes millions of mail pieces every day, supporting clients across the country from its facilities in the Southeast, Southwest, Northeast and Midwest. (Photo: Business Wire)

Postal Center International (PCI) processes millions of mail pieces every day, supporting clients across the country from its facilities in the Southeast, Southwest, Northeast and Midwest. (Photo: Business Wire)

LONDON--(BUSINESS WIRE)--Apr 3, 2025--

According to the latest report from Omdia’s Large Area Display Production Strategy Tracker, display panel makers maintained a fab utilization above 80% in 1Q25 but are expected to reduce utilization in 2Q25. As the pull-in demand for 1Q25 winds down at the start of 2Q25, set makers are adopting a more conservative approach to panel purchases.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250402228909/en/

Uncertainty surrounding the new U.S. tariffs on display application products including TVs, PCs and smartphones, combined with reduced panel orders from brands and OEMs, is prompting panel makers to scale back capacity utilization. Omdia predicts utilization will drop below 80% in April 2025 and further to 76% in May 2025.

Since 4Q24, panel makers have operated fabs at high utilization levels of 81%-83% driven in part by China’s “swap old for new” subsidy program which has boosted demand for LCD TV panels. Chinese TV manufacturers have accelerated production and shipments to the U.S. to mitigate tariff risks, pushing demand higher in early 2025, particularly for 75 inches and larger LCD TV panels.

However, concerns over new potential U.S. tariffs starting in April and uncertainties in display panel demand have led to PC and TV set makers reduce their panel inventory purchases. Some have already reduced their panel orders for 2Q25. In Omdia’s February 2025 outlook, April utilization was expected to be 82% and May at 78%. However, with some China TFT LCD makers planning extended breaks for the May Labor Day holiday utilization could fall further to around 75% in May.

“With demand slowing and uncertainty around tariff impact, panel makers are shifting from their original high capacity utilization mode back to the production-to-order mode,” said David Hsieh, Senior Director for Display research in Omdia. “This strategy should help stabilize panel prices amid weakening demand. . However, since panel prices have remained elevated over the past six months, TV and PC brands and OEMs may push for further price reductions to offset U.S. tariffs.

Hsieh added, “The display market is entering into a new cycle and will likely stabilize later in 2025. Tariffs and their impact on display demand will be the biggest swing factor in this transition.”

ABOUT OMDIA

Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.

Fab utilization rates (%)

Fab utilization rates (%)

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