EXPLORING THE ISSUE OF IMPORTED CASKETS FROM CHINA

The following is a summary of information gathered from articles found in various industry news outlets. The issues surrounding the topic of Chinese casket imports strike chords with many throughout every sector of the funeral industry. Some support imports and do so vehemently – others speak about them as if they are the beginning of the end (if not the end already). A great deal of the controversy revolves around the quality and price of the caskets. Obviously there are many different players that hold many different points of view; with the funeral director holding a much different opinion and considering different factors than an American casket manufacturer.

Why are funeral directors importing?
It seems as if the answer would be found somewhere in the middle of an amorphous jungle of facts, arguments, figures and speculation, but... the answer appears to be found in one spot: the bottom line.

According to most of the articles, the authors cite the rationale among funeral directors for importing as the tremendous cost savings as opposed to buying from domestic manufacturers. For some of these directors, they are able to purchase caskets of similar quality from Chinese manufacturers at nearly 50% savings for what they cite as comparable quality. With this savings is mind, they are able to pass along considerable savings to customers and also still keep a larger piece of the pie – a perceived win-win.

In Thomas Parmalee’s article in ‘American Funeral Director’, he quotes Casket and Funeral Supply Association chief Mark Allen suggesting that the shift is simply a bottom line decision. He continues to explain that, although Chinese caskets represent only a small portion of the marketplace, the growth trend in the past years is making it a startlingly oncoming issue. He also leans toward the notion that, even as relationships with domestic casket suppliers had not been injured (which would have been a possible cause for a market shift like this), they may sour over time as more and more directors take the import route.

Parmalee’s article also discusses the converse of the issue: Why are some funeral directors NOT importing? The answers to this question are as many as waves on the ocean. While some feel loyalty to suppliers (with whom they have a track record working with and ‘know what they are getting’) and, more importantly, client families who demand American-Made products, others cite the broad uncertainty of the quality of product they receive. The funeral director interviewed by Parmalee is sticking with domestic companies due to a bad experience(s) with Chinese caskets. He avers that until you receive the merchandise, you are not sure of the quality and then, if it is of poor quality, you have no recourse against the company due to international hurdles standing in the way of recouping losses due to damaged products. The interesting footnote to this funeral director’s comments is that he has not shut the door on importing caskets from China. He is keeping an open mind to finding a quality manufacturer that he can trust and that will be a viable supplier (again, the savings are tremendous).

The CFSA chief feels that the growth of importation of Chinese caskets into the domestic market will flatten out. In an interview he gave to YBNews (now Funeral Home & Cemetery News) early in 2008, Allen expressed faith in the agility of American manufacturers. He states that the quality of the caskets and the ability of manufacturers to provide custom pieces with speedy turnaround times will keep most domestically produced caskets in selection rooms in large numbers for years to come.

The uncertainty facing the market is clear. However, with the growth of China’s economy and manufacturing capabilities, they will be facing more regulation and restriction from their own government as well as quality control issues with discerning funeral directors. An interesting side note is a firm operating in China that claims that there is nothing to worry about in the arena of quality if they work with them. It is a consultancy that operates as a purchasing and quality assurance agent on the ground – working with the manufacturers to insure accuracy of orders and quality of product. Businesses of this type are one part of the catalyst of growing confidence(and sales) in Chinese caskets.

While the casket imports only amount to 2%, they doubled in number from the previous year. This is an issue that suppliers, manufacturers, funeral directors, and at- and pre-need families are and will be keeping tabs on for the next many years.

Works Cited:
American Funeral Director, June 2008, YB News, February 2008