2021 November Funeral Home Industry

Welcome to your first IncredibleBank newsletter – just for our funeral home customers! This newsletter will hit your inbox about twice a year, and we promise to keep it full of useful and interesting tidbits specifically for our customers in the funeral home industry.

Fun(eral) Facts

Did you know...

  • …the average life expectancy in the US is 79?
  • …the average cost to the consumer for an adult funeral is $8,755 according to the National Funeral Directors Association (NFDA)?
  • …that consumer advocates and members of the public are urging the Federal Trade Commission to make online pricing mandatory as it reviews its 1984 funeral rule?
  • …that more people die from selfies than from shark attacks? Think about that next time you snap that pic from a scenic cliffside.

Modest Revenue Growth

Due to strong economic conditions and the aging population, death care services revenue has grown. Industry revenue rose 2-5% annually from 2010 to 2017, fell 1.5% in 2018, then rose 0.8% in 2019 and 9.8% in 2020. Overall revenue for cemeteries has risen in recent years, despite the trend towards cremation versus traditional burial. 

Cremations Projected to Increase

Cremations are projected to increase from about 56% of funeral services in 2022 to 75% in 2030. The percentage of deaths cremated has grown steadily over the last 50 years. Direct cremations, which do not involve a casket, service, or memorialization of remains, generate less revenue than traditional funeral services that involve burial. 

Rather than seeing this as an obstacle, some companies are using it as an opportunity to enhance cremation-related services by promoting personalized memorials, specialized urns, and niches in mausoleums or columbariums. Some companies are developing or expanding space in cemeteries for cremated remains.

Personalized Services

Funeral directors have observed an increase in personalization for death care services. Personalization includes the use of contemporary music, dressing the deceased to reflect their lifestyle, custom floral arrangements, service webcasting, and custom-made caskets. 

Families are also incorporating meaningful photos, playing video tributes, sharing stories, and spreading ashes in a meaningful location. The increase in personalization is due to the desire for a better celebration of life, need for more choice, and a decline in religious traditions.

Wages at death care services rise

Average wages for nonsupervisory employees at death care services were $22.13 per hour in July, a 4.3% change compared to a year ago.

What Does it All Mean?

While the industry is seeing modest growth, the increase in wages, combined with a focus on cremation services rather than burial will require funeral homes to utilize unique, personalized services to continue their growth.

Tips From the SBA

If you own a business located in a declared disaster area that has experienced damage, you may be eligible for financial assistance from SBA. Businesses of any size and most private non-profit organizations may apply to SBA for a loan to recover after a disaster. Loan proceeds may be used for the repair or replacement of the following:

  • Real property
  • Machinery
  • Equipment
  • Fixtures
  • Inventory
  • Leasehold improvements

Meet the Relationship Officer Team!

At IncredibleBank, you’ll have an entire team supporting you and your financial needs(Opens in a new Window). Meet some of the team: