FedEx has again topped the list of US Postal Service Suppliers, earning $1.61 billion in revenue – about a $68 million drop from the previous year.
Law firm Husch Blackwell (a practice concentrates on postal industry matters) has released its annual list of the top 150 US Postal Service Providers, which looks at the companies with the largest USPS supplier relationships. USPS spent $13.9 billion on outside purchases and rental payments in FY 2017, an increase of $181 million over the previous year. About half of the total was on transportation-related purchases.
“Increases in transportation spend are inevitable when USPS adds a million new delivery points each year, and increased package volume takes up space vacated by reduced letter mail volume,” says Husch Blackwell partner David Hendel, who compiled the list based on data from FOI requests.
FedEx carries package and letter mail for the USPS. FedEx’s air cargo network contract with the Postal Service has been extended several times, and the latest extension takes it to September 29, 2024.
The Postal Service has 17,000 suppliers; however, many of them are smaller companies with contracts to deliver mail. Only 81 suppliers collected revenues exceeding $25 million in 2017.
The top 10:
- Hoovestol Inc. and its affiliated company Eagle Express Lines - $452 million in revenue. Much of this increase was due to Eagle absorbing the mail transportation contracts of Beam Bros. Inc.
- EnergyUnited Electric Membership Corporation, which provides telecommunication and energy billing services - $402 million in revenue, though its revenue declined by $12 million decline from last year.
- Salmon Companies, a mail hauler - $314 million in revenue.
- Victory Packaging - $221 million in revenue. Victory is responsible for fulfilment, distribution, warehousing, call centre, and outbound transportation of USPS branded packaging products to Post Offices.
- Accenture Federal Services - $204 million in revenue, an increase of $14 million from last year.
- HP Enterprise Services a provider of computer equipment - $198 million in revenue
- Northrop Grumman Corporation, which operates the Postal Service’s central repair facility in Topeka, Kansas, rose to eighth place with $183 million in revenue.
- Wheeler Bros
- United Parcel Service, which provides air transportation and related services - $171 million in revenue.
Passenger airlines were outside the top 10. United Airlines earned $164 million revenue; American Airlines $92 million. Both companies earned greater revenue from USPS than the previous year.
FedEx has topped the list since 2002.
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