However, organisations are increasingly turning to contractors and temporary staff as a viable solution to these challenges. This approach not only fills immediate talent gaps but also provides flexibility and agility in an evolving market.
Traditionally, contractors have been used to cover leave, such as parental or long-service leave, but now contracting is being used as an alternative resourcing solution, especially where teams are already overloaded and stretched in bandwidth. Contractors are being increasingly employed for functional, project-based requirements.
The increase in contract recruitment in these sectors is driven by three main factors:
1. Engineering Shortages - According to Engineering Australia's ' Statistical Overview of the Engineering Profession' report Australia is facing its highest level of engineering shortages in over a decade, with demand outpacing supply.
2. Supply chain transformation - The modernisation of supply chains, coupled with challenges like labour shortages in logistics and the rapid adoption of new technologies, is driving organisations to seek short-term contractors to manage key projects and keep operations moving
3. Flexible hiring strategy - Across every sector, contract roles have grown in popularity as businesses opt to stay flexible and agile in their hiring strategies to be responsive to changing needs. According to PMI, an estimated 25 million project managers will be required globally by 2030.
While contracting has historically been used to fill high-volume junior positions, many organisations are hiring mid to senior-level contractors for high-impact and high-responsibility project-based roles. We’re talking about very senior, experienced professionals who have left permanent roles to become contractors.
There’s a clear trend where people are becoming contractors to access a wider job market, gain more autonomy, earn better pay, and stay challenged as they move in and out of different organisations.
Here are some of the ways Six Degrees Executive’s clients are using contractors:
Bringing in Project Managers to help with a system implementation change.
Hiring an Instructional Designer to help review and overhaul standard operating procedures to increase onboarding capability.
Engaging a Senior Production Leader to look after a site while the incumbent was sick.
To act as a consultant for a Technical Maintenance and Reliability team to clear through a backlog of analytical activity due to the team being short-staffed.
Hiring contractors to avoid shutdowns during peak seasons like Christmas, while full-timers are on leave.
For leaders in engineering, operations, and supply chain, contracting offers an effective way to address skills shortages without disrupting day-to-day operations. Contractors can help you fill urgent vacancies and manage critical projects, enabling your business to maintain productivity.
However, accessing a skilled talent pool remains a key challenge. Partnering with a specialist recruitment agency ensures that you can find high-quality candidates quickly, allowing you to remain competitive and meet business goals.
As Australia continues to experience talent shortages across engineering, operations, and supply chain sectors in 2025, contracting remains an essential solution for businesses looking to stay agile and resilient. Whether you’re managing long-term projects or short-term needs, contractors provide the flexibility and expertise required to keep operations running smoothly.