Wednesday, February 9, 2022

Bi-Partisan Postal Reform and Its Impact on Small Business Manufacturing Distribution

The cost and quality of shipping is highly important for the overall success of small businesses. It can be hard to compete against larger companies that have better profit margins and higher levels of negotiation skills. Small businesses rely on shipping and the small product distribution processes that will become increasingly important in economic development. If you can't ship efficiently and on time nationally (and/or internationally) it will be hard to stay competitive for long (i.e. the need for Soo Locks investment and better distribution systems. See Delta County Shipping, Infrastructure Synergy, National Infrastructure Dev., Michigan EV, ).

Within the Delta County Cluster Model I'm developing that focuses on innovation the use of USPS (and other shipping services) are important for success of small batch custom micro manufacturers. In this model, local micro manufacturers can contribute to local tourism through branded projects that improve the downtowns but may end up receiving much of their income from selling nationally and internationally (Hedging American Start Ups, Rebuilding Downtown Escanaba/Gladstone, Delta County Start Up Firms, Bi Partisan Infrastructure Bill and UP.). For example, if your selling custom snow shoes, polo mallets, fishing poles or golf clubs you would need a distribution system (Your not Walmart with your own fleet!) so you will rely on existing distribution/shipping systems. 

There are a few concepts and ideas that seem to be focused on they are (Bergman, J. Feb. 8th, 2022):

  • Eliminate the requirement to prefund retiree health benefits 

  • Improve transparency 

  • Protect six-day delivery

  • Help implement Postmaster General DeJoy’s 10-year Reform Plan 

  • Support local community newspapers 

  • Strengthen oversight and accountability 

You may want to read more about the......

 H.R.3076 - Postal Service Reform Act of 2022

Shipping is very important for businesses. The Pandemic caused a lot of delays and that is continuing on today with distribution chains spread across the world in an unreasonable and expensive fashion. Small businesses that can ship and receive products quickly in a cost effective manner are going to do better than those who can't receive the supplies. For example in Michigan 48% of small businesses are experiencing domestic supplier delays. You can review the Small Business Pulse Survey that shows the difficult businesses have in locating foreign and domestic suppliers and the delays in each (Small Business Pulse Survey {Michigan}, January 27th, 2022).

What we might need to keep in mind is how to we promote small business in this country to support things like innovation, investment environment, organic wealth generation, small town development, middle class growth, and diversity. The distribution system is a big part of local and national success. The cost and speed of shipping is a big chuck of profit margins and growth in business development. We are developing high speed internet (virtual transactions that lead to sales, innovation, and knowledge) while ensuring our ground based infrastructure is ready to receive supplies and deliver products (See Chaos Economic Evolutions and Legislation, Infrastructure, Inflation)

Bergman, J. (Feb. 8th, 2022) Bipartisan Postal Service Reform Bill Approved in U.S. House {Congressional News Letter}

Postal Service Reform Act of 2022, H.R.3076, 117th Congress (2021-2022)https://www.congress.gov/bill/117th-congress/house-bill/3076

Small Business Pulse Survey {Michigan} (January 27th, 2021). Census Bureau. https://portal.census.gov/pulse/data/#weekly

Side note: See the term Bi-Partisan in most of these legislative actions and behaviors in a way that is getting things done which will likely increase economic performance (in turn business and lives) for the region. Hyper politics pits arguments against each other while ignoring 90% of the solutions in the middle. I wonder if we can do this on other important things? Just saying! 😲😱


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