The company I work for built a few plants in non-union Kentucky and Mexico and outsourced a large portion of our manufacturing, assembly and shipping jobs down there. The kentuckians make about 60% of what we do, the Mexicans about 10%. Scrap rates are at an all time high, but with the money they save on labor they can afford 80% scrap rates and still profit. Mind you, before all this outsourcing started my company was making 25% clear profit on over $30,000,000 a month.