Category Archives: Urns

Casket Industry Suffering Due To Cremation

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There are only two things in life that are certain – birth and death. For those in the casket industry, their business is currently on a state of uncertainty. A hedge fund in New York thinks the same way thus they decided to cut their investment from the top casket manufacturer. The firm believes that the profits of the casket manufacturer are suffering because of the increase in demand for cremation. Cremation means the clients need cremation urns rather than caskets.

Spruce Point Capital said that the shares of Matthews international have decreased by 32 per cent in the last 12 months and they predicted that its shares could decline an additional 65 per cent.

Around 40 per cent of the revenue earned by Matthews is coming from caskets and products related to burials. The company’s share recently went down by 1.1 per cent, which puts them at $51.50.

Spruce Point said that they do not think that the company based in Pittsburgh will be able to come out from this ordeal as they are questioning the ability of the management.

Two years ago, 50.2 of Americans chose to be cremated rather than have a traditional burial. The figure is higher compared to the 48.5 per cent recorded in the previous year. The figures were released by the National Funeral Directors Association adding that burial costs have also declined.

According to the prediction made by the NFDA, 78.8 per cent of Americans will prefer cremation over burial by 2035.

Spruce Point added that aside from caskets, mausoleums and headstones, Matthews also offer cremation services as well as urns. The problem is that the cost of cremation is only 10 per cent of the cost of a traditional burial.

Matthews admitted that the increase in demand for cremation may eventually have a negative impact to their business.

During the regulatory filing conducted by Matthews, a warning was sent by the company regarding the decreasing volume of memoralization products made of granite and bronze as well as caskets because the people of the United States prefer cremation urns. The company added that online memorials are also a growing trend because it is faster and cheaper.