GERMAN MONUMENT INDUSTRY - QUESTIONS AND ANSWERS

(This article appeared in the print edition of Litos in May, 1999).

One of the biggest applications of granite in Germany , and a seemingly stable market at that, is its use in the funerary sector in the form of monuments. First time visitors to the Nuremberg fair are sometimes surprised to find so many exhibitors displaying monuments in different designs; the monument industry is, in fact, so important that in this year "s edition it will occupy a separate section. But how big is this industry ? How is it structured, what are its characteristics, where is it heading , these are some of the questions addressed in this article. For the sake of simplicity the approach used has been the question and answer format.

WHAT IS THE SIZE OF THE MONUMENT INDUSTRY IN GERMANY ?

Exact size of the industry is hard to make, even in country like Germany, but most estimates place local production at between 300,000 to 325,000 units per year and the rest, 175,000 were imported. Given an average price of 5000 DM ( about 2500 EUROS) per unit, the total market size is therefore worth about DM 2500 million ( approximately 1250 million EUROS).

AFTER UNIFICATION HAS THERE BEEN AN INCREASE IN THE SIZE OF THE MARKET IN GERMANY ?

When Germany was united it meant an addition of sixteen million people to the Federal Republic. In the Communist Eastern state the use of monuments was not frequent because of the suppression of religion but in the last decade the use of granite monuments in the eastern part has slightly increased. However, the overall increase in the market size was probably very modest, if at all, because falling sales in West Germany neutralised any increase in the East.

IS THERE A GROWING TENDENCY TOWARDS CREMATION ?

Yes, there is a growing tendency towards cremation, especially in the big towns. One reason for this is the high cost of a funeral which can come to anything between 4000 and 8000 Euros. Between 1994 and 1998 the number of earth graves reduced by as much as 25%, and it is estimated that 20 % reduction was because less people died in the period, and the other 5% reduction was due to increased cremation. Needless to say, the monument industry and the church both have been lamenting this phenomenon saying the people are losing their culture and traditions.

There is another tendency affecting the monument industry, that of the anonymous funeral. In this case one pays only for the funeral, with no additional costs - no flowers, stones, or anything. In the towns of the eastern Germany this trend is more pronounced as it takes place in between 30 and 60% of the cases. In the western part this occurs in between 0 and 30% of the cases.

IS THERE ANY PART OF GERMANY WHERE GRAVESTONES ARE USED MORE OFTEN ?

In Southern Germany very few anonymous funerals take place, most graves are earth graves. In the North the preference is for the traditional urn graves. The size of the stone monuments are thus influenced, big in the south, small in the north.

HOW MANY GERMAN COMPANIES ARE INVOLVED IN MANUFACTURING MONUMENTS ? TYPICAL SIZE OF A GERMAN MANUFACTURING COMPANY ?

The industry can be divided broadly into three types of production enterprises: a) the industrial companies, which supply to the workshops and the stonemasons, b) industrial companies equipped with industrial technology but which sell directly to the customer, and c) small workshops which purchase the prefabricated gravestones and then finish the art work before selling to the customer.

The typical size of a small workshop is between 3 to 4 employees while the biggest companies employ more than 100 people.

Most companies are organised in the so called DNV (Deutscher Naturwerkstein-Verband ) which consists of 260 members. Statistics are available only for these.

WHAT PERCENTAGE OF THE MONUMENTS USED IN GERMANY ARE IMPORTED ? FROM WHICH COUNTRIES ? ARE IMPORTS INCREASING ?

Given that out of the total of 500,000 monuments about 175,000 are imported, this means imports account for about 35% of the total market. Most of the monuments are imported from India which, in recent years, has developed a highly sophisticated manufacturing industry. The local availability of granite colours preferred by the German market and lower labour costs in the manufacture of a product which has a higher labour cost component as compared to standardised products is the reason why Indian made monuments have found a market in the country . Between 1991 and 1997 the imports have grown by ten times , though in recent years, however, imports seem to have stabilised( see accompanying graph).

IMPORTS OF MONUMENTS IN GERMANY

WHAT DESIGNS OR COLOURS ARE MOST POPULAR ?

Germans like multicoloured stones in red and brown, green and other earth colours. In recent years the green and blue colours have become more popular and the use of red colours has slightly decreased.

HAS THE FACT THAT INSURANCE COMPANIES ARE TAKING OVER GRAVEYEARDS IN SEVERAL COUNTRIES ALSO AFFECTED GERMANY ?

Yes, the German monument industry is also being affected and the stonemasons fear this development. There is a lot of talk about privatisation of cemeteries but this development, one gets the impression, has not advanced as far as in other countries. In recent years the industry has been struggling against this trend but it remains to be seen whether it can do anything about it.

WHAT ARE THE MEDIUM TERM PROSPECTS FOR THE MONUMENT INDUSTRY IN GERMANY ?

Obviously there is no one answer to this question, it depends on the person one is speaking to. Many industry professionals, when asked, paint a very negative picture and see the local industry having no future. In 1997 16 companies employing about 800 people closed down. But the situation is not necessarily hopeless. Germany is currently passing through a stage where the younger people are receiving huge amounts in inheritance, and, moreover, as someone says, in Germany tendencies change like the weather. Imports have stagnated in recent years, they have not completely wiped out the local manufacturing sector as feared earlier. Who knows, it might even become "chic" to use stone monuments in the future as people feel the need to go back to their old traditions. What the German companies need to do is to find new strategies, make better commercial efforts, instead of giving up, as they seem to be doing now. But the general consensus is that over time, the German monument industry, if not the market, will become smaller in size.

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