Kansas City, Mo., March 06, 2018 (GLOBE NEWSWIRE) -- Husch Blackwell announced today the publication of its Top 150 U.S. Postal Service Suppliers list, an annual look at the companies with the largest supplier relationships with the U.S. Postal Service (USPS). USPS spent $14 billion on outside purchases during fiscal year (FY) 2017, with about half of that total on transportation-related purchases. David Hendel, a partner in Husch Blackwell’s Technology, Manufacturing, and Transportation industry group and leader of the firm’s Postal Contracting team, has compiled the list of top USPS suppliers annually since 1999. The list is based on data received in response to Freedom of Information Act requests.

All told, the Postal Service spent $13.9 billion on outside purchases and rental payments in FY 2017, an increase of $181 million over the previous year. The Top 10 USPS suppliers received a total of $3.9 billion, which is 28% of the Postal Service’s total spend and $400 million more than last year’s Top 10. The Top 150 suppliers received $9.2 billion, accounting for about two-thirds of the agency’s total spend.

The Postal Service has 17,000 suppliers; however, many of them are smaller companies with contracts to deliver mail. Only 81 suppliers collected revenues exceeding $25 million in 2017.

“Transportation and technology companies continue to dominate the top spots on the USPS supplier list, and most of these contractors earned higher revenue than last year,” said Hendel. “But increases in transportation spend are inevitable when USPS adds a million new delivery points each year, and increased package volume takes up space vacated by reduced  letter mail volume.” 

As it has since 2002, Federal Express Corporation lands atop the list, this year with $1.61 billion in revenues – about a $68 million drop from its 2016 earnings. FedEx carries package and letter mail for the Postal Service. FedEx’s air cargo network contract with the Postal Service has been extended several times, and the latest extension takes it to September 29, 2024.

Mail haulers Hoovestol Inc. and its affiliated company Eagle Express Lines rolled into second place with $402 million in revenue. Much of this increase was due to Eagle absorbing the mail transportation contracts of Beam Bros. Inc. The fourth spot was filled by another mail hauler, Salmon Companies, Inc., with $314 million in revenue.

United Parcel Service, which provides air transportation and related services, rounded out the Top 10, with $171 million in revenue. The highest-ranked passenger airline was United Airlines, at no. 11, with $164 million revenue; the next highest passenger airline ranked was American Airlines, Inc. with $92 million. All three entities earned greater revenue from USPS than the prior year.

Technology companies also figured prominently in the Top 10 for FY 2017. EnergyUnited Electric Membership Corporation, which provides telecommunication and energy billing services, was ranked third with $402 million in revenue, though its revenue declined by $12 million decline from last year. Accenture Federal Services ranked sixth with $204 million in revenue, an increase of $14 million from last year.

HP Enterprise Services, LLC, a provider of computer equipment, was seventh with $198 million in revenue. Northrop Grumman Corporation, which operates the Postal Service’s central repair facility in Topeka, Kansas, rose to eighth place with $183 million in revenue. Other technology companies are not far behind, with IBM, Verizon, and Deloitte Consulting LLP again placing in the Top 20.

The only company in the Top 10 not providing technology or transportation-related items is packaging products supplier Victory Packaging. Victory boxed up $221 million in revenue, almost exactly the same amount as last year. Victory is responsible for fulfillment, distribution, warehousing, call center, and outbound transportation of USPS branded packaging products to Post Offices.

2017 TOP 10 USPS SUPPLIERS

Rank	Company	FY16 Revenues ($)	Billing Location
1	Federal Express Corp.	1,610,032,667.51	Pasadena, CA
2	Eagle Express Lines, Inc. / Hoovestol, Inc.	452,429,404.39	South Holland, IL
3	EnergyUnited Electric Membership Corporation	402,457,507.23	Statesville, NC
4	Salmon Companies, Inc.	314,302,632.19	Little Rock, AR
5	Victory Packaging	221,231,326.34	Houston, TX
6	Accenture Federal Services	204,401,689.37	Chicago, IL
7	HP Enterprise Services, LLC	198,520,000.24	Plano, TX
8	Northrop Grumman Corporation / Solystic SAS	194,079,920.46	Merrifield, VA
9	Wheeler Bros., Inc.	179,731,008.40	Somerset, PA
10	United Parcel Service of America, Inc. (UPS)	171,629,039.45	Louisville, KY

Entries for companies believed to be affiliated or have common ownership were consolidated under the company with the highest individual ranking or best known name. City/state designations are based on the information in USPS payment records and may not be the contractor’s primary location. As in past years, purchases made under credit cards (including U.S. Bank and Voyager card fuel purchases) are not included in this list.

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About Husch Blackwell’s Postal Service Contracting Team

Husch Blackwell’s Postal Service Contracting team assists clients in contracting with the U.S. Postal Service, and its members are knowledgeable regarding the needs specific to the postal industry. The team has compiled annual reports on the top U.S. Postal Service suppliers since 1999, developed and presented dozens of seminars on Postal Service contracting to thousands of attendees, and written the definitive treatise on successfully doing business with the USPS.

About Husch Blackwell

Husch Blackwell is an industry-focused litigation and business law firm with offices in 18 cities across the United States. The firm represent clients around the world in major industries including energy and natural resources; financial services and capital markets; food and agribusiness; healthcare, life sciences and education; real estate, development and construction; and technology, manufacturing and transportation. For more information, visit huschblackwell.com.

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