Batesville Casket Company, Inc has admitted that cremation over the long haul will take away from burials. This means only one thing, the decline of the Traditional Funeral Industry and the Rise of the Alternative Funeral.
Batesville CEO Joe Rover made this statement in an investor call yesterday.
In addition to a lower number of deaths, we believe the year-over-year rise in the cremation rates for the quarter was higher than it has been historically. As we’ve discussed in previous calls, the economic crisis led consumers to seek lower cost funeral alternatives which in turn caused the growth in the cremation rate to spike in the second and third quarters of 2009. We’ve seen it moderate somewhat over the past two quarters but it still remains above the historical increases of approximately 120 basis points. Looking ahead, we believe the cremation rate will continue to normalize but the fact is over time, cremations will continue to grow to replace burials.
Looking ahead as cremation replaces burials this means the traditional Funeral industry is in decline and will continue to be in decline.
The lower cost funeral will rise to be mainstream in America. Funeral directors need to adjust to this now if they are to survive.
THE RISE OF CREMATION & CREMATION TAKING DOWN THE TRADITIONAL FUNERAL WAS ALL PREDICTED IN REST IN PEACE INSIDERS TIPS TO THE LOW COST LESS STRESS FUNERAL-a yourfuneralguy publication.
This scenario does not point to a good future for The parent company and Hillenbrand, Inc’s stock NYSE: HI. It means over the long term that Batesville Casket will have lower Casket Sales.
Funeral Industry| Funeral News|Funeral Blog by Your Funeral Guy