Why heavy industry is hiring more contract engineers

Heavy industries such as energy, automotive, mining, and chemical sectors are increasingly shifting from traditional permanent engineering teams to flexible, project-based hiring of contract or “gig” engineers. This transformation is driven by factors including tight budgets, volatile markets, and the need for specialized skills—particularly in automation, controls, robotics, and digital upgrades—that may not be available internally. Following significant workforce reductions after the 2020 oil bust, companies now prefer assembling just-in-time engineering teams tailored to specific projects, avoiding the overhead and long-term commitments associated with full-time employees. Cost analyses reveal that contractors can be nearly half as expensive as full-time engineers when factoring in benefits and overhead, making contract staffing financially attractive in boom-and-bust industries. While this model offers agility and cost savings, it also presents challenges. Heavy industry projects often require deep system integration, and reliance on temporary staff can increase error rates and turnover due to less institutional knowledge. Consequently, companies must invest more in supervision and onboarding of contract engineers.