According to 2017 Key Findings, a postal industry report from the IPC Global showed that the volume of mail outgoing has reduced but the industry remains strong as well as profitable. This is because posts are now highlighting important factors such as efficiency, growth and diversity. Despite the fact that there are many courier companies, the postal industry is not backing down.
In the Key Findings report which was published at the end of last month, the postal industry remains to have a steady but slow growth despite the challenges.
International Post Corporation said that in 2016, the industry’s revenue growth was only 2 per cent. For the first six months of this year, the documented growth is 1.4 per cent. Business units’ performance gap is wider in the first half of 2017 as opposed to the first quarter of last year. Looking at the average numbers, the decrease in mail revenue is at 1.3 per cent while there is an increase in the parcel revenue which is recorded at 11.4 per cent. In these two divisions, the operating margins remain strong.
IPC added that the constant growth in the online shopping industry spanning borders is the reason why there is an increase in demand for delivery of parcels all over the globe.
For the entire year of 2016, the revenue coming from express and parcels has grown an average of 6.5 per cent while the year-on-year figure showing the increase in volume is only at 7.8 per cent.
As of the moment, international parcels only comprised less than a fifth of the average volume of parcels. Majority of operators are predicting that the deliveries from one border to another is more likely to increase thus growth will be evident in the coming years.
According to the CEO of IPC, Holger Winklbauer, the postal industry is growing mainly because of high number of parcels and express which is due to the increase in volume of e-commerce transactions. Online shopping relies heavily in courier companies in order for their goods to reach their respective buyers and clients.