In a time when companies are outsourcing abroad, Habitat International, a Tennessee-based carpet manufacturer, has managed to achieve superior levels of productivity at home, often two to three times greater than its competition. Habitat's business has grown enormously, with much of its new business coming from work outsourced to them by competitors who could not come close to matching its productivity.

Habitat's secret: they hire the people no one else will.

At Habitat three of every four workers have a physical or mental disability. They earn normal wages and are cross-trained on...