The Evolution of the Funeral Industry
The funeral service industry is relatively new in the United States. Funerals in the United States were traditionally organized by family and neighbors and held at the deceased’s home until the twentieth century. People were frequently buried on the family farm. Common cemeteries began to be used as communities grew larger and more established. Funeral homes were later established to relieve families of the logistical problems that death presented. Look into funeral homes in Lyons, IL to learn more.
The Developing Undertaker
The undertaker refers to the person who took charge of funeral arrangements. Because building caskets was a logical extension of their business, many of the early undertakers were furniture makers. For them, an undertaking was a sideline rather than a primary occupation.
The History of Embalming
Although embalming dates back to the ancient Egyptians, it became popular in the United States during the civil war to preserve the bodies of fallen soldiers for the journey home. As embalming became more popular, the skills required aided in turning the hobby into a legitimate profession.
From Wood or Cardboard to Metal Caskets
Casket manufacturing evolved from the days when undertakers made coffins. By 1950, there were over 700 companies in the United States producing caskets. Over 50 percent of caskets sold at the time were made of cloth-covered wood or cardboard. Metal caskets, on the other hand, were gaining popularity and necessitated a more sophisticated manufacturing process that could only be provided by larger companies.
The consolidation of casket manufacturers occurred concurrently with the consolidation of funeral homes and cemeteries. Consumer preferences continued to shift, and by 1990, metal caskets accounted for more than 60 percent of industrial production. Metal casket manufacturing requires a lot of capital, which has contributed to the consolidation. Currently, only two casket manufacturers account for more than 60 percent of caskets produced in the United States.
Funeral Homes Remain in the Family
Most funeral homes and cemeteries have been small, family-owned businesses that have been passed down through generations. In the late 1960s, the industry began to consolidate, with large corporations purchasing mom-and-pop funeral homes and cemeteries.
Consolidators continue to operate acquired businesses under the family name to retain the funeral home’s loyal following. The seller is frequently retained in a management role, and existing personnel are retained.
Many changes occur in the back office after a consolidator takes control, where they seek to improve profitability by implementing computer systems and other advanced business practices, as well as realizing economies of scale.
Despite over 30 years of consolidation, the industry is still dominated by small, independent, family-owned businesses. It is estimated that the four largest funeral service operators own 15 percent to 20 percent of the approximately 23,000 funeral homes in the United States. They own only about 1,000 of the over 20,000 cemeteries in the United States, though many of these cemeteries may be inactive and unavailable for acquisition.
The funeral homes in Lyons, IL have a long history. Our company had grown to the point where it required a newer, larger facility, and we continue to evolve. Visit our office and speak with us today if you need help or would like to get more information about our services.
