As the owner of a consultancy I have to acknowledge that FTEs are often appropriate, for good reasons:

FTEs are available in perpetuity (theoretically), contractors can be flighty

Manageability of FTEs is assumed, while freelancers often multiplex

Overall lower cost

IP/knowledge remains in-house with FTEs (talent acquisitions show this is a big deal)

Of course, there are some bad reasons too (trust issues, etc.).