Death Care Services

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 14,500 death care service providers in the US prepare the dead for burial or interment, conduct funerals, and operate sites or facilities reserved for the interment of human or animal remains. Death care service providers include funeral homes, cemeteries, and crematories. Funeral homes account for about 74% of firms, while cemeteries and crematories account for the remainder. Some companies operate facilities that provide funeral services and cemeteries at the same location.

Pre-need Sales Dependent on Financial Markets

Because the proceeds from pre-need sales are typically invested in stocks, bonds and other instruments, death care service providers are vulnerable to declines in financial markets.

Government Regulation

Because the purchase of death care services occurs when families are especially vulnerable, sales are regulated at the federal, state, and local level.

Industry size & Structure

The average death care services provider operates out of a single location, employs 9-10 workers, and generates over $1.5 million annually.

    • The death care services industry consists of about 14,500 companies that employ 137,000 workers and generate about $23 billion annually.
    • Funeral homes account for about 74% of firms, while cemeteries and crematories account for the remainder.
    • The funeral home industry is fragmented; the top 50 firms account for about 22% of industry sales. The cemetery industry is less fragmented; the top 50 firms account for about 53% of industry revenue.
    • Traditionally, death care service providers have been small, family-owned businesses that are passed down for generations.
    • Large companies include Service Corporation International and Carriage Services.
                          Industry Forecast
                          Death Care Services Industry Growth
                          Source: Vertical IQ and Inforum

                          Recent Developments

                          Nov 13, 2024 - Funeral Expenses Higher
                          • Funeral expenses rose 4% in October 2024 compared to the previous year and were up 0.7% compared to the previous month, according to the US Bureau of Labor Statistics (BLS) Consumer Price Index. Death care services employment was relatively unchanged in September 2024, while wages increased, according to the BLS. Employment was down 0.4% in September 2024 compared to a year ago. Average wages for nonsupervisory employees in the industry grew 2.2% in September, reaching $21.97 per hour, per the BLS.
                          • According to Connecting Directors, Thacker Caskets has introduced a new personalization option called “Lid Art” allowing families to add memorial portraits, photo inserts, and other designs to the casket. The program is called “Impressions by Thacker” and allows families to choose from 40 different designs such as hobbies, interests, religion, and the military. The lid art is a full-length magnet that can be installed on the lid. The company considers it an option for families who are considering getting a casket wrapped. According to Thacker’s VP of Marketing, Danielle Thacker, “We have recognized the growing interest by consumers of unique methods of personalization. Consumers have begun going to sources outside the funeral industry to achieve this. A great example is those consumers who have begun purchasing vinyl wrapped caskets, just like a vinyl wrapped car. Thacker has answered this growing funeral consumer demand in a way that is much more affordable and can be done on a traditional at-need delivery timeline with its new lid art product.”
                          • Several acquisitions in the death care space address providing different types of services to meet the needs of today’s consumers, according to Funeral Director Daily. Major funeral services provider Foundation Partners Group (FPG) acquired the end-of-life help online platform Cake in September 2024. FPG said the acquisition is expected to streamline and personalize the end-of-life planning experience for individuals and families. In September 2024, Batesville acquired death care software case management company Halycon to expand its services offered to funeral homes. The acquisition is expected to assist funeral homes with software offering a family-facing arrangement tool, software with body-tracking capabilities, pet cremation management software, and trade services management software.
                          • The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in October 2024, with a seasonally adjusted 35% of small business owners reporting jobs they could not fill. The reading is up one point from September 2024. A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months, unchanged from September. About 20% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “On Main Street, the job market remains challenging. Although the labor market appears to be softening overall, small business owners reported little success filling their plentiful vacancies in October.”
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