Demographics play a vital role

 

Where people are living has an incredible affect on the number of families a local funeral provider will serve in a given time period.  Today’s article will introduce you to some graphics and articles about how demographics are shifting in the United States.  And, it is really important to know these demographic shifts if you expect your Death Care business to profit from them.

 

Two things led me to investigate these demographic shifts that are coming about in American society.  First of all, just last week Funeral Director Daily reported on Carriage Services’ acquisition of a large Central Florida Death Care operation.   The size of the acquisition made me wonder if the large national consolidators like Carriage Services, Service Corporation International, Foundation Partners Group, and Park Lawn Corporation have set their sights on the “Big Operators” and have less and less interest in smaller 300-500 call facilities.

 

Secondly, Real Clear Investigations wrote a recent two-part series on America’s demographic movement with the parts titled “Exodus:   Affordability crisis sends Americans packing from big cities” and “Revival:  Americans heading back to the Hinterlands“.   I’ve been on top of this issue, but yet the articles were fascinating to me.

 

It points to a new wave of movement in America. . . from the big cities to the smaller towns.

 

The Migration is now to areas outside of America’s Urban centers

 

Okay — let’s get to the demographics of a funeral home.  For over a hundred years every little community in America has had a local funeral home. . . . and ethnic areas of large cities have also had their “local” establishment.  Those funeral homes were generally operated by a single proprietor who made his living taking care of his community.  Unless the community grew, funeral home growth was non-existent.  And, for over a hundred years, America has had a demographic movement from the rural areas to the city making many of these communities smaller.   So, more than likely, especially with the advent of lower-cost cremation, over time many of these small community based funeral homes became branches of larger community firms out of necessity.

 

And, as property became expensive in major metropolitan areas funeral homes located within the city sold their property for more value than they could get out of running the business so funeral homes left the big cities too.  Here’s a somewhat dated article (2016) about funeral homes leaving the San Francisco city limits.  According to the article, San Francisco had 43 funeral homes in 1970, but as of the article date was down to less than a dozen.

 

In today’s migration of citizens, the larger a city is, the more apt people are to move from there.

 

Knowing where the people are, and are going to be, is now becoming as important to a funeral business as being a Death Care facility that is recognized and known.  There are plenty of funeral homes that thought their neighborhoods or communities would never change.  Many of those funeral homes have seen their clientele move to other areas and are now struggling to survive.

 

Other funeral homes foresaw the move to the suburbs in the last quarter of the 20th century and built chapels in communities that were very young and without a funeral home.  Those that had that foresight are reaping the benefits today.

 

I think that is important to note in today’s world.  There are always opportunities.  If the big national operators only want 1,000 call firms there are smaller national and even regional operators who will look to acquire those somewhat smaller, but still large, firms.  And, you can follow the numbers down to the very small communities where a loss of retirement citizens to more regional cities might allow for a perfect opportunity for a neighboring funeral home to purchase that community’s funeral home and operate it as a satellite location.  In essence, the opportunities are endless for those that want to grow.

 

However, you need to know how and where the populations are shifting and migrating to make the right decisions. . .  which includes the right price of acquisition.  Are today’s Death Care providers positioned for this move?  Is your funeral business positioned for this move?

 

Famous American bank robber Willie Sutton said he robbed banks because “That’s where the money is”.  I can’t help but think if you want to operate a profitable funeral home, you need to be located “Where the people are”.

 

Related ArticleExodus:  Affordability crisis send Americans packing from big cities.  Real Clear Investigations (Sept 9, 2025)

Related ArticleRevival:  Americans heading back to the hinterlands.  Real Clear Investigations (Sept 11, 2025)

 

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