Consolidating plants

Members of Congress should be asking why it makes sense to close more plants, eliminate thousands of jobs, slow down the mail, drive away postal business, reduce tax revenues, and harm local economies.

That’s why the five reports all observe that the “savings” for the Postal Services “come at a dear economic and individual cost” for the community.The impacts on state, local, and federal taxes are also significant.(A more complete worksheet can be found here.) The reports stay focused on the five communities and don’t venture any estimates about what the results mean for the country as a whole.However, using these numbers, one can make some estimates about the picture nationwide.When the Postal Service closes a large mail processing plant, it doesn't just impact postal workers. Other people lose their jobs, business activity slows, tax revenues decline.

The loss of postal jobs thus has a multiplier effect that ripples through the economy of the entire region.(The APWU had nothing to do with this earlier study.) The NIU study examined how Postal Service reductions in the workforce impacted the economy of Sangamon County.The study showed that a loss of 300 postal jobs would cause another 145 jobs to be lost in other sectors of the economy.Taking the average for the five consolidations, we see that when 150 postal jobs are eliminated, the equivalent of another 80 jobs are lost in the community.This net loss of 230 jobs causes a loss of about .7 million in economic output to the state or region.An article in Government Executive in September 2014 broke down the job losses plant by plant and came up with a total of 7,320.