Contractors give flexibility, and that flexibility costs.
It can make perfect sense though if the work you need doing is only seasonal, in which case better to pay twice the employees salary amount for 3 months work to a contractor than the full 12 months to an employee.
Whirlygig, you said you are a contractor - do you prefer it that way, or would you rather have a steady salaried job (doing the same thing)?
FFF