Print’s future is in the mail

The printing industry provides 80% of Australia Post’s mail business but has little influence over its business decisions. Andrew Macaulay is setting out to change that.

A high-powered panel discussion between the Printing Industries and Australia Post is seen by Macaulay, CEO, as a first step in resetting the relationship between the two co-dependent industries. As the national mail carrier awaits the arrival of its new CEO, Christine Holgate, the peak printing organisation is attempting to build bridges and repair a formerly fractious relationship.

Macaulay facilitated and hosted the meeting between senior Australia Post executives and representatives of the printing industry. The meeting was videotaped and is available to a wider audience.

Peter Bass, a member of Australia Post’s executive leadership team along with Mark Pollack, General Manager Mail Products, were there to explain the progress of the organisation controversial long-term reform programme. On the printing side were Matt Aiken COO, Ive group and Rodney Frost, CEO of the Lamson Group, keen to understand if there is any end to the continuously rising mail charges. They were joined by Nadine Bucher from mail house, Bing.

In the hour-long exchange Aiken wanted to know what were the strategies Australia Post has in place to mitigate the decline and improve the ROI for those parts of the industry that still firmly believe in the viability of the mail channel. He claimed the industry was on a cycle of price increases followed by mail volumes decline that has to change.

Bass, who is responsible for Australia Post’s operational network including both parcels, letters and mail, responded to a question from Frost by revealing there is a decline in volumes of roughly 10% pa while at the same time the number of delivery points is growing by 2%. This results in the organisation of more than 25,000 employees and 5,000 contractors across 500 facilities nationally, having an amazing 90% of its costs fixed with little room to move.

Pollack pinned the main driver of mail volume decline to digital substitution, much of it from the Federal Government’s drive to gain efficiencies from the channel. He maintains the shift towards digital is the key point that emerges from Australia Post’s demand analysis.

The full panel discussion is available to members of the Printing Industries and other interested parties here.

Pollack is about to embark on a national tour, Up Close with Australia Post, organised by Printing Industries, to meet with printers and mailing houses around the country. The full itinerary is:

Registrations open 7.00am for 7.30am commencement of breakfast and presentations. The event will be completed by 9.30am