NOW:53154:USA00949
http://widgets.journalinteractive.com/cache/JIResponseCacher.ashx?duration=5&url=http%3A%2F%2Fdata.wp.myweather.net%2FeWxII%2F%3Fdata%3D*USA00949
39°
H 39° L 35°
Partly Cloudy | 6MPH

USPS expects new facility to aid bottom line

Logistics, equipment to provide efficiencies

Dec. 31, 2008

With the U.S. Postal Service reporting a loss of $2.8 billion in fiscal year 2008 and projecting another difficult year in 2009, building an 870,000-square-foot mail processing and distribution center might seem counterintuitive.

But plans for the facility at College and Pennsylvania avenues in Oak Creek are on track and should not be impacted by the daunting economic outlook, said Marge Oehlke, USPS spokeswoman.

A rezoning request for the facility was approved by the Common Council in December. Construction is expected to take 24 to 30 months and would not begin until after improvements to Pennsylvania Avenue are completed in 2009.

Officials are hopeful the new facility will help USPS achieve its financial goals as it looks to cut its losses in 2009 and beyond.

“In mail processing, most cost savings will result from increasing productivity, reducing fixed costs and consolidating operations,” Oehlke said, all of which would be achieved at the Oak Creek facility.

For example, the new facility would house Oak Creek’s existing postal facility at 7620 S. 10th St., as well as a warehouse and processing and distribution center in Milwaukee, and would use more modern and energy-efficient equipment, she said.

“Much of the efficiency comes from the logistics of the building itself,” which will be on one floor, versus the four-floor Milwaukee facility, she added.

For city officials, one of the most important benefits of the facility is keeping jobs in Milwaukee County and Oak Creek. Some residents, however, questioned whether some of the more than 2,000 jobs that will come with the development could be lost through automation in the future.

All USPS facilities already use optical character readers and bar code sorters to sort and dispatch mail to delivery offices, and USPS plans to install equipment to automate the sorting of oversized envelopes, newspapers, magazines and catalogs at its facilities beginning in late 2009, Oehlke said. But that is not expected to reduce jobs.

“We’re still going to need employees to work the automated equipment, and most of the same (job) functions will be at the new facility as were at prior facilities,” she said.

Building the new facility meets the USPS goal of making capital investments that will provide a return on investment, Oehlke said. Based on a 40-year economic study, owning the new Oak Creek facility rather than leasing separate facilities would be to the postal service’s advantage because of the reduced operating costs and improved service, she added.

Oehlke declined to provide estimated costs for construction of the Oak Creek facility, as a contract for the project has not yet been awarded.

More USPS financial information can be found at usps.com/financials.

— Julie Becker, Staff Writer

AT A GLANCE

Other steps USPS plans to take to address its financial shortcomings include:

• cutting administrative positions

• reducing non-personnel costs

• reducing capital spending

• increasing retail sales

This site uses Facebook comments to make it easier for you to contribute. If you see a comment you would like to flag for spam or abuse, click the "x" in the upper right of it. By posting, you agree to our Terms of Use.

Suburban News Roundup

E-mail Newsletter

Your link to the biggest stories in the suburbs delivered Thursday mornings.


Enter your e-mail address above and click "Sign Up Now!" to begin receiving your e-mail newsletter
Get the Newsletter!

Login or Register to manage all your newsletter preferences.

Community Watch

» Franklin boys volleyball team wins Southeast divisional title 10/22

» Glen Morrow hired as new Franklin City Engineer 10/22

» Poll: Which area team will win a state football title? 10/22

» Franklin's EDC remains clouded in political dust-up 10/21

» Man arrested for fraud after ordering food, passing out and leaving eatery 10/21

» Teen drug use, prevention panel discussion Thursday, Oct. 30 10/21

» Early voting now open at Oak Creek City Hall 10/21

» County Supervisor Steve Taylor to host Oak Creek town hall meeting on Wednesday 10/20

» County Supervisor Steve Taylor to host Hales Corners town hall meeting on Wednesday 10/20

» Across Wisconsin, uneven property assessments fly in the face of fairness Updated:  10/19

» Preps football photos of the week: Week 9 10/17

» New theater group raises the curtain in Franklin 10/15

» Village Board requests Hales Corners Wading Pool remains open in 2015 10/15

» At Franklin High, digital age overtakes parent-teacher conferences 10/14

» 2 arrested after having sex in car in grocery store parking lot 10/14

» Star Wars-themed events held through Saturday at Oak Creek Public Library 10/14

» Poll: Will Greendale or South Milwaukee win in Week 9 matchup? 10/14

» Man charged for facilitating a sex crime with 13-year-old girl in Hales Corners 10/13

» Preps football photos of the week: Week 8 10/10

» Franklin football team outlasts Indian Trail, 31-24, closes in on SEC title 10/9

» Submit election letters now: deadline is Oct. 20 10/9

» Dispute over Franklin mayor's appointees leave Economic Development Commission stranded 10/8

» Wrecked car cautions high schoolers against impaired, distracted driving 10/7

» Veterans memorial falls in face of Greendale School District opposition 10/7

» Preps football photos of the week: Week 7 10/3

View All Posts Got a tip? Welcome rss

Advertisement

Deal Watch - Milwaukee

Milwaukee's Best Discounts & Deals

Advertisement

Local Business Directory

Advertisement

CONNECT    

Advertisement