What's new in the death-care industry?

• Author: Schefmeyer, Karen
• Position: Funeral industry - Includes related article - Industry Overview

Tradition dies hard in Indiana's funeral home business.

For decades, the funeral industry has heard all the jokes. That being a mortician isn't a "lively" profession. That the funeral industry is a "cash-and-bury" business. That casket manufacturers are facing "stiff" competition.

But in Indiana, the funeral business--referred to today as "death care"--is no laughing matter because of its impact on the state's economy. In fact, Southeastern Indiana has been dubbed "casket corner" because of the number of manufacturers.

"Traditionally, Indiana has been the headquarters for the casket industry," says George Lemke of the Casket Manufacturers Association of America, based in the Chicago area. Lemke estimates that in excess of "60 percent of the caskets sold in the United States are either produced in Indiana or produced by companies who are headquartered in Indiana."

Some of the companies include Batesville Casket Company in Batesville, Aurora Casket Company in Aurora, Cambridge City Casket Co. and Paul Casket Co. in Cambridge City. In Brookville, Franklin Casket Co. makes low-end, cloth-covered caskets suitable for cremation, and in Lynn, Goliath Casket makes oversized caskets.

According to industry figures, casket manufacturers are employing fewer people in recent years. In 1987, the casket industry employed some 8,600 nationally, compared to 16,000 employees in 1967. And Lemke predicts when 1992 census figures are tabulated, that figure will drop to below 8,000.

"This industry has undergone tremendous consolidation. Some 25 or 30 years ago, this was very much of a local and regional industry. It is now very much of a national industry in terms of its competitive structure. As a result, we have seen at least 300 companies go out of the business," Lemke says.

For the past five years, his industry has seen a consistent national market of about 1.8 million units, with no real prospect for significant growth. Lemke explains that "any increases seem to be taken up by increases in cremation."

Indeed, while Indiana's casket industry is far from having one foot in the grave, there is a significant trend toward cremation. The nationwide cremation average was 18.5 percent in 1991, a startling rise from less than 5 percent in 1974. That percentage is expected to continue upward in decades to come. In Indiana, however, the cremation rate has always remained below the national average. Last year, the Hoosier rate was 7.7 percent or 3,885 cremations, according to statistics from the Cremation Association of North America. That figure rose from just 5.8 percent in 1987.

The cremation rate in Indianapolis appears slightly higher than the statewide rate. Brian K. Buchanan, president of Flanner & Buchanan Mortuaries and Crematory, estimates that 9 percent of his family-operated business is cremation. "Cremation is a term that means different things to different people," says Buchanan, whose company owns and operates nine funeral homes in Indianapolis, Zionsville and Carmel.

"A lot of times we find that people don't really understand what cremation involves. They aren't aware that you can still have services--a visitation or a funeral service or a memorial service--in conjunction with the cremation," he says. "I think some people see cremation as having no services and having a direct type of disposition."

"COMBOS"

Flanner & Buchanan joined a national trend when it opened a funeral home on the grounds of a cemetery. Such associations are called "combos" because of their convenience factor.

Within the...