US FUNERAL INDUSTRY BUCKS ECONOMIC DOWNTURN

Business is holding steady for the US funeral industry as consumers shrug off worries about the economy to give their loved ones a costly send-off. “Everybody’s affected by the economy. But people die.” Said Bob Hanson, who sells pre-paid funeral insurance. According to the association, funeral services are an $11 billion industry in the United States. The association projects the US death rate will increase from eight people per thousand in 2007 to 9.3 people per thousand in 2020 and 10.9 per thousand in 2040, as baby boomers die off in growing numbers. Underpinning future growth, spokeswoman Jessica Koth said the industry doesn’t follow typical consumer spending patterns. “People don’t borrow from the 401k to buy groceries or gas.” Koth said, referring to retirement savings accounts.

Funeral directors and suppliers believe that business is holding steady, and even growing for some niche products: Fortress Mausoleums’ cast-stone, above-ground tombs range in price from $5,000 to $15,000 with the two person model being the most popular and still selling well.

Source: The Economic Times