IPC: Employees’ Continuous Efforts to Improve Performance Are Paying Off

Postal operators worldwide reported an average revenue increase of 2.1% in 2023, despite weaker global economic growth, according to preliminary results released today by the International Post Corporation (IPC).

Holger Winklbauer, CEO of IPC, commented on the results: “Initial results show that posts have overcome their post-COVID slump in 2022 and have recovered with average growth, despite generally difficult economic conditions and slower economic growth. Posts’ ongoing efforts to increase efficiency and meet changing consumer needs are paying off, but need to continue.”

Although economic growth in 2023 was moderate, it was weaker than in previous years. The global economic slowdown is affecting postal costs and revenues, with mail volumes and profit margins falling in some areas.

Logistics and shipping are the main sources of mail growth as traditional letter mail continues to lose ground. E-commerce and the rise of online shopping have boosted package delivery volumes. While e-commerce remains a key revenue driver because it increases mail volumes, growth has slowed since the pandemic peaks.

Given the ongoing advancement of digitalization and changes in communication methods, the volume of letters continues to decline. The shift from letters to logistics and parcels has forced improvements in logistics and last-mile delivery services to meet consumer demand for fast and reliable delivery.

The postal industry is trying to diversify into financial services and logistics and is investing heavily in digital technologies to improve operational efficiency. This includes automation, artificial intelligence and data analytics to optimize sorting and delivery processes.

Postal operators are increasingly collaborating on a global scale to streamline international shipping and customs processes. This cooperation helps ensure faster and more efficient cross-border deliveries, benefiting both consumers and businesses engaged in international trade.

The full 2023 results will be presented in the IPC Global Postal Industry Report, to be published in November 2024. The report will provide a comprehensive and detailed overview of the postal industry, covering over 50 postal operators worldwide and analyzing key market trends. A publicly available summary, the IPC GPIR Key Findings, will also be published in November.

For more information about the IPC Global Postal Industry Report, please visit:
http://www.ipc.be/services/markets-and-regulations/market-intelligence/global-postal-industry-report