Specialist Fleet Services (SFS) and CTS Hire have thrived in recent years despite challenging market conditions. FVI Editor Ann-Marie Knegt caught up with MD Bob Sweetland to find out how the company continues to create opportunities for its customers – now and into the future.
A major challenge currently facing the sector is the availability of vehicles and parts. With lead times of 12-18 months or more for refuse and food-waste vehicles, it can be a challenge for operators to manage their fleet replacement needs. However, this also presents opportunities to businesses that have planned ahead, as SFS and CTS Hire have done.
MD Bob Sweetland listened to his customers, and SFS placed several orders for refuse and food waste trucks some time ago, putting both businesses in a strong position to help customers struggling with vehicle availability. For example, SFS has been able to assist a new client, Epping Forest, which is set to revise its food-waste collection from April 2026. ‘This wouldn’t have been possible if SFS hadn’t had vehicles on order. Overall, this has been a very positive strategy.’
SFS is currently in discussions with several major local authorities about opportunities and has a pipeline of business potential on its radar. Interest in contract hire is picking up again, and the company has made significant investments in local authority workshops and staff.
SFS has always preferred to maintain its vehicles in-house because this enables greater control. ‘We have adopted a holistic approach to taking over workshops, involving the transfer of the facilities and the TUPE transfer of staff, along with training people as EV technicians. We’re realising that we can’t rely on third parties to maintain our fleet effectively. The main dealer network is overwhelmed, making it increasingly difficult to receive service at the required times. Their maintenance costs have also risen significantly, while smaller independent garages mostly lack the resources and expertise we require for our specialist fleet.’
SFS has a substantial business presence in the South West, including local authorities in Mid Devon, Exeter, Teignbridge, Somerset and North Devon. It has established several depots and workshops to support its customer base, most recently opening a new workshop in Wellington and a facility on the Marsh Barton Estate in Exeter.
‘By managing maintenance ourselves, we meet the high standards our customers expect. We currently operate 15 workshops nationwide, dedicated to delivering exceptional client care.’
One advantage that SFS has is its parent company, Paragon Bank. ‘Paragon provides us with unlimited funding. This means we own our entire fleet, and we are funded through intercompany loans, whereas many of our competitors have to go through third-party finance and don’t actually own their vehicles.’
This offers many operational benefits, including lower funding costs – savings that can be passed on to customers, making the business a more competitive choice. ‘It also instils greater confidence. Having that backup is reassuring for our customers. Despite challenges, we have the financial backing to meet customer requirements. Moreover, we can deliver support in a holistic manner, surpassing mere financial assistance.’
Food waste collection
Bob notes that the food waste market is experiencing significant growth due to new regulations. By 31 March 2026, all households in England will be required to have weekly food waste collections under the Simpler Recycling legislation. This is a key component of the Environment Act 2021, which requires local authorities to provide this service to prevent the accumulation of odorous waste.
Additionally, starting in 2027, regulations on the collection of plastic film will become more stringent as part of broader reforms. From 31 March 2027, plastic film packaging and bags must be included in the mandatory plastics waste stream for households and businesses.
Both sets of new rules are impacting the type of vehicles local authorities require. Although early estimates suggested that the majority of public-sector organisations would choose 7.5-tonne vehicles for food waste collection, Bobs says many of SFS’s clients have opted for 12-tonne vehicles instead.
‘Many have shown an interest in the Terberg Matec 12-tonne ORUS, as well as the Farid Hillend Engineering Micro XHD. These types of vehicles will likely become standard in UK fleets. Conversely, we have seen a slowdown in the take-up of electric refuse vehicles.’
Electric decline
Bob believes this electric vehicle slowdown is due to several factors, including the cost of electric vehicles, concerns about performance, and client trials in geographically challenging areas where vehicles struggled to meet their needs. ‘Primarily, the concerns are around depot infrastructure, specifically charging, as well as the cost of installing the required infrastructure in ageing facilities.’
He adds that the differences in the urban and rural operation of electric vehicles are also affecting the uptake of EVs in the refuse collection sector. One of SFS’s clients in Devon trialled an eRCV and found that it could not complete a full day’s collection on a single charge because of the mileage required and the hilly terrain. In contrast, in Exeter, eRCVs can operate for several days without a recharge.
However, eRCVs may also be a victim of the prevailing confusion about the best way to decarbonise fleets. ‘There is no clarity on how to move forward,’ says Bob. ‘Should we focus on hydrogen, electric or something different? In the tenders over the last year, we have priced options for both diesel and electric, but with a 26-tonne truck, the electric options often fall short in comparison. There are simply too many uncertainties, and the cost associated with large EVs is too high for most.’
SFS is happy for customers to use HVO (hydrotreated vegetable oil) in its vehicles, as long as the manufacturers approve it, and many SFS clients now use HVO. However, Bob points out that the biofuel presents new challenges, particularly around supply chains, potential fraud, and rising costs. ‘The demand is also increasing while the supply is tightening, which is raising prices globally.
‘Doing the right thing and being environmentally conscious isn’t cheap. However, there is no excuse for inaction, and that is why our customers are opting for the smaller vehicles, which enable them to act in a practical and manageable manner.’
Addressing the skills gap
Another significant dynamic in the market is the skills shortage, so SFS and CTS are investing heavily in recruiting technicians and offering attractive employment packages. The businesses are also focusing on training and development, as local authorities struggle with recruitment and retention. ‘Maintenance is critical for our customers and plays the most significant role in procurement, so where the public sector has issues with staff, we can offer the reassurance that we can deliver maintenance and service at all times.’
SFS has also invested in apprenticeship programmes. ‘Our apprentices complete their training and stay with us, underlining the success of this strategy.’
The next step for both SFS and CTS, explains Bob, is the expansion of their depot network in northern England. With an existing strong base in Kettering and Northampton, Bob is considering expansion to cities such as Manchester and beyond. ‘The upcoming local government reform is likely to deliver new and interesting prospects, and the merging of authorities will bring changes in procurement methods. This presents both opportunities and threats, and we will learn in the Autumn Budget what those threats will be.’
However, Bob says that his biggest wish for the company’s future is for the staffing issue to become easier. ‘Finding the right people and retaining them is essential, because staff are the key to our success. We need to keep our people motivated and well-trained so they can pass that motivation and training to customers in the form of excellent service. Therefore, we pay them well and offer competitive packages, while providing ongoing training in new skills and a suitable work-life balance. We foster a healthy company culture where staff stay for their entire career.
‘We are very proud of what we have accomplished over the last 32 years, and pride ourselves on being reliable, and this steadiness is what our customers want,’ concludes Bob.
