In this week’s issue of Newsweek magazine, Associate Editor Matthew Philips in “Where Death Comes Cheap,” that the $15 billion funeral industry has always been seen as recession-proof. But this recession is proving different. Families are beginning to seek ways to cut bills that were once seen as sacrosanct. Long-term trends (like the growing acceptance of cremation) are coalescing with the down economy to lead some industry veterans to sense a shift.

Central Maryland funeral directors are weathering the current economic downturn fairly well at the moment.

“With the changes in the economy, funeral homes are not a whole lot different from a business standpoint,” says G. Douglas Stauffer, co-owner of Stauffer Funeral Home. “Operating costs and overhead are far greater than they were. … Contrary to what many people believe, the large profits simply aren’t there. You’ve got to be a good manager and provide good service to survive, and you can’t take shortcuts.” Stauffer Funeral Home has 6 facilities in the area, and recently consolidated their administrative operations in Frederick, to save money.

Stauffer and Keith Roberson of Keeney & Basford Funeral Home in Frederick both say families have not been cutting back significantly on their options, saying that many families have already made provisions for funeral costs. Still, Stauffer says prearrangements are starting to fade slightly at his business.

The Gazette has more.

The Associated Press has a piece about how the aging baby boomer generation will affect the funeral industry. Experts say the average funeral home could see over a 30 percent increase in their call volume over the next two to three decades, until the death rate settles again in about 2040.

Though dipping slightly over the last several years, and expected to be stagnant for several more, the death rate of about 8.1 per 1,000 people is expected to inch significantly upward sometime in the next decade and eventually go as high as 10.9. The exact dates are tough to pinpoint because of the size of the generation and medical advances.

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I found the “event planner” comment interesting. I know funeral directors have occasionally crossed over from the hospitality industry; one director I used to work with was a Red Lobster manager. How about it? Are funeral homes finding more employees with event planning or hospitality backgrounds?

The funeral industry isn’t being overly affected by the current US economic issues. Forbes reports that given the aging baby boomer population, the industry is actually looking at a slight upswing.
“People don’t borrow from the 401k to buy groceries or gas. This is a major life event, like a wedding, so people are willing to borrow from their 401k or cash in that life insurance,” said NFDA spokeperson Jessica Koth.