Pitney Bowes 2004 Annual Report Download - page 7

THE FUTURE OF MAIL
Over the past decade, I have worked hard to promote
the mailing industry and foster a spirit of partnership
with the national posts around the world.
We have built a strong partnership with the U.S.
Postal Service. Postal reform, a package of legislation
providing a blueprint for a modernized, more efficient
Postal Service, could dramatically improve our
mail-related opportunities. We also are paying close
attention to the European posts, particularly in light
of the fact that the legal and regulatory environments
in Europe are expected to change significantly over
the next two years.
Mail has a bright future as a critical communication
channel. Contrary to common perceptions, the rise
in electronic forms of communication has not led
to a reduction in overall mail volumes. While mail
is declining as a percentage of overall message
volumes, absolute volumes continue to increase.
In 2004, the U.S. Postal Service experienced four
consecutive quarters of increasing volumes.
I believe that stable postal rates can result in even
higher mail volumes for the following reasons:
>Organizations are increasingly finding mail to be
an exceptionally effective medium for building and
strengthening stakeholder relationships. Businesses
that were not large mailers in the past, like small
retailers, are learning about the power of mail.
>The trend toward remote commerce creates
another opportunity for mail, since videos, digital
photos, prescription drugs and many other items
ordered online must be shipped. Our very successful
partnership with eBay to provide Internet postage
services is a good example of how we are taking
advantage of this trend.
>Remote voting is growing in popularity, with more
and more states liberalizing their election laws to
accommodate voting by mail. In 2004, we launched
a suite of products that helps ensure that the right
ballot gets to the right voter on time and helps verify
that the person returning the ballot is in fact the right
registered voter.
>Transaction mail volumes are proving to be
surprisingly resilient. For every consumer who shifts
to electronic bill presentment or payment, there
seems to be a comparable increase in mailings for
health claims, satellite TV or radio subscriptions, gift
card mailings, and the like.
ALIGNMENT AND FOCUS
During 2004, we consolidated all our operating
activities, allowing us to take a more integrated
approach to serving our 2 million customers world-
wide. As part of this move, our Board of Directors
elected Murray Martin as President and Chief
Operating Officer in October. He is responsible for all
of our lines of business throughout the world and will
drive an integrated strategy in collaboration with key
staff and business leaders.
In another move, we announced that we are pursuing
an investor-sponsored spin-off of
our Capital Services business.
GOVERNANCE AND LEADERS
I am pleased to say that we continue
to be recognized for our leadership
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MAIL HAS
A BRIGHT FUTURE
AS A CRITICAL
COMMUNICATION
CHANNEL