By Thomas A. Parmalee
Mike Miller, chief operating officer of FT North America, knows a thing or two about cremation.
He started in the business more than 35 years ago at Stewart Enterprises, where he rubbed elbows with seasoned executives and learned life lessons from Frank B. Stewart Jr., who was its chairman and controlling shareholder before it was acquired by Service Corporation International.
After SCI acquired Stewart, it extended a very nice offer to Miller to stay on with the company. But Miller had been buying Stewart Enterprises stock for more than a decade, and he was in the enviable position of being able to try something new.
“I had an offer from InvoCare Limited,” he said, referring to the Australian public company that mainly operates in Australia, New Zealand and Singapore. At the time, it was looking to expand into the United States.” He took the job.
A little over a year ago, he was wooed out of semiretirement by FT, which put him to work growing its business in North America.
We recently caught up with Miller to get some of his insights on cremation operations – as well as why he thinks doing business with FT is a great option for funeral homes.
Is FT growing?
FT North America has been on a steady growth path since its first U.S. sale in 2008. As more and more people who understand the important metrics of a successful cremation business become familiar with how our focus on quality leads to reduced maintenance/downtime costs, our focus on efficiency shows up in reduced labor and gas costs. Our focus on safety ensures customers are doing everything possible to provide the best for their employees and community. Ultimately, our customers realize that FT is the only cremation equipment manufacturer that is aligned with their vision for serving cremation families.
Beyond the United States, what areas of the world do you sell cremation units to? And what areas of the world do you personally focus on?
FT is more than 100 years old. We have operated in many different countries throughout Europe since 1908 and have many clients all over the world in Asia, Australia and South America. That is at the heart of what makes us a unique provider, as our designs and equipment have been meeting the strictest of European standards, which far exceed U.S. standards.
My team focuses on North America, which is primarily the United States, with several locations in Canada, and interests in Mexico.
What are the pros and cons of using a third-party crematory?
That’s an interesting question. As you know, I have experience running operations for half the country at Stewart Enterprises, where we owned all of our own crematories – and I was partial owner/operator of a large crematory in Los Angeles that performed about 4,000 cremations annually for only third parties, so I’ve lived both sides of that coin.
The biggest pro of owning your own crematory is complete control of the cremation process. You can always ensure you can meet the needs of the families you are serving because you have control over scheduling – witness cremations, rush cremations, casketed cremations, oversize … those requests that need special consideration don’t need to involve a third party to “make it happen” on the timeline the family expects.
Additionally, costs like labor to drive cases back and forth to a third party should be considered when thinking about whether to own your own crematory. Some locations I know are driving two hours to the crematory and two hours back. If you are doing more than a couple hundred cremations a year, it doesn’t take much for those costs to justify consideration for adding your own crematory.
On the other hand, third-party providers are the backbone of the industry in many ways. Barriers to entry for adding crematories can be overwhelming. Third parties can eliminate a lot of the red tape that some might experience with trying to open their own crematory operations.
For many operators, it’s simply a matter of knowing their third-party provider is convenient, in compliance, in budget and trustworthy. Just like with start-ups, they offer longtime operators the opportunity to meet their customers’ needs without the barriers that they may face in their current locations.
What are some red flags you should be on the lookout for if you use a third party and conduct an inspection?
I would say visit unexpectedly and visit often. In the corporate environment, we had compliance officers that held routine inspections, with detailed checklists that held us to a very high standard.
As a third-party provider, the best operators I worked for “showed up” at the crematory on a regular basis. One owner in particular would bring a case in on his own from time to time. You never knew when you’d look up and see him at your door. A good third-party provider should be welcoming and appreciative of that interest. It shows they operate at a high standard at all times, not just because they knew you were coming. Likewise, good owners know what they see. If you are uncomfortable, trust your gut and look for alternatives.
Fill in the blank: When a firm is handling ___ cremation cases per year, it’s time for them to think about investing in their own crematory. Explain.
That is a hard one to answer because so many variables are at play. It could make sense for you to consider adding a crematory at 100 cases if you are having someone drive several hours a day to get there and back, 300 if you’re in a growing market, or 1,000 if your business has achieved that level of success and you want complete control of your vision for serving those families. Everyone’s journey to exploring the addition of cremation equipment and facilities is a unique path. Helping make those dreams and visions a reality are a big driver for us at FT. Check out a number of our projects at FTNorthAmerica.com. If you can dream it, we can most likely make it happen.
Are there any new state regulations that funeral professionals should be aware of as it relates to emission standards, and how might this impact other states?
The biggest concern for adding or updating cremation equipment is ever-changing state regulations. The new NOx standard in California, for example, reduced the acceptable levels of NOx emissions from 60ppm to 30ppm from one year to the next. Fortunately, since we completely build our machines and burners, we have been the only provider that I know of that has been able to redesign the FTIII to meet that standard in testing. We hope to have state verified tests this year with one of our scheduled new machine installs. Those kinds of potential future regulation changes are what crematory owners and potential owners need to take into consideration when choosing a provider. Is what you are buying today preparing you for whatever comes in the future?
We’ve also been designing and building the highest-quality filtration systems that meet the strictest European standards for decades. Any FT you buy today is already designed for additional filtration should future regulations require it. I know that was important to me as a crematory owner. I could sleep at night knowing I was prepared for whatever the future looked like.
How often should you conduct routine maintenance on your crematory and who should conduct it?
Like a car, boat or other significant investment, routine maintenance is the key to protecting it. You should always follow the guidelines of your manufacturer, as all machines are designed and built differently.
At FT for example, our MaxLife lining system is designed to double the time between routine maintenance by replacing traditional refractory with our own proprietary “blocks,” which can save thousands of dollars over the life of the machine in maintenance and downtime costs.
Are crematory operators paid enough in this business? Are they appreciated enough? How important are they to the funeral home?
Crematory operators are your last line of defense against significant issues and mistakes: I repeat: Crematory operators are your last line of defense against significant issues and mistakes.
Never underestimate the role of a good crematory operator in your organization. You need someone in that role who can read, understand, notice red flags and make the call to STOP when there is a question. If you have created workarounds for the operator to not think on their own, you may want to consider upgrading that person at your location.
What type of training should most funeral professionals get when it comes to cremation? Is there a particular course, program or conference you recommend they attend/go to?
Both ICCFA and CANA have a good one-day operator training program that I think does a good job with the basics.
This last year, we were honored to partner with the Cincinnati College of Mortuary Science, providing the college with a brand new FTIII, loader, processor and ash transfer cabinet. That donation was an easy “yes” when we heard they were elevating the art of cremation in the same way as they elevated the art of embalming when I graduated in 1992. You can read a detailed article about FT’s donation to CCMS here.
We’re also in the process of creating our own in-depth training program for FT customers that will take place at the Cincinnati college twice a year. Stay tuned for more on that.
What are some ways that a funeral home can assuage concerns from the community – or address those concerns – about a crematory being put into a residential area?
As with any “not in my backyard” type business, rumor and misinformation can get far ahead of you if you don’t get buy in from important stakeholders prior to announcing your intentions.
The best advice is to get ahead of it with local, county and community leaders. Provide education and information before you publicly announce your plans. Arming them with what they may hear and the answers for why much of that is simply not true before they hear it from constituents, as well as the value families will experience from a local and trusted provider after a loss is critical. Our info packet is available to you by logging into FTNorthAmerica.com and noting “Not In My Backyard info packet” in the notes.
Do you think we’ll ever see a method of disposition challenge cremation as the preferred choice of disposition? Why or why not?
I am always intrigued by the new options that are offered to families after a loss. Only the future can say if they will exceed cremation as the preferred choice of disposition. People are people, and there will never be one option that is “better” than another in my opinion if it helps people grieve or honor their loved one in a way that provides peace.
Mike Miller has made it his life’s work to serve families at their time of greatest need and to help his fellow professionals do the same. If you enjoyed this article or want to reach out to him, write him via email. You can also learn more about FT.
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