Deep in the heart of Tennessee is a pencil company that was founded in 1916. More than 100 years ago, James Raford Musgrave founded this company because he knew there was an abundant supply of red cedar that he could cut into slats and sell to German pencil makers.
Not only did he tap into a global market from day one, he also struck up a deal with local farmers where he’d exchange cedar rail fences for modern wire equivalents - thus upgrading the farmers boundaries while supplying his factory with perfectly dried wood ready to be processed into pencil stock. From 1916 to 1923 this was the bread and butter of the business - and he even devised a process to extract the cedar oil from the knots and cast-off parts to sell as an oil base for perfumes.
The advent of WWI required a pivot to production from milling as exports to Europe became restricted. Colonel Musgrave then bartered with Europeans for the full pencil manufacturing equipment so he could manufacture complete pencils. He also discovered that California cedar was a great alternative to Tennessee cedar and began shipping these logs to TN via rail cars.
By the end of WWII with increased demand for lumber and supply chain challenges the Musgrave company stopped their logging and cutting operations and focused on manufacturing pencils using pre-made slat materials from the West Coast.

In the 1990s imported pencils began to flood the market which drove most domestic pencil manufacturing overseas. This also meant that slat material sources also moved overseas. So, while Musgrave still sources much of their component parts domestically, some pieces are still imported. But final manufacturing is still based right in Shelbyville, TN.
You can still find the ‘Tenessee Red’ pencil in their product lineup - and that’s one of the products I’m highlighting today. This pencil was brought back into production after Musgrave was able to secure a cedar slat source. While they continue to refine their production process working with this somewhat temperamental wood, you may notice some very small imperfections - but we think that’s the wonderful part of these very unique pencils! They’re rated 4.9/5.0 stars on their website and they also have a factory-second option if you’d like to try them out at a reduced price.
MadeInUSAFinder - Musgrave Tennessee Red

Another great option if you’d rather start with a more basic #2 pencil is the ‘60-Count Pencil Pack’ which is an excellent classroom-friendly option where all pencils come pre-sharpened. They come in a corrugated box perfect for storage and include latex-free erasers, rounded-edge hex grip and are lacquer/paint free with a natural finish. At approximately $0.27 per pencil, they’re also a great deal! These pencils are rated 5.0/5.0 stars on their website and get rave reviews for their consistency and performance.
MadeInUSAFinder - Musgrave Pencil - 60 Pack

DISCLAIMER: I am not affiliated with Musgrave Pencil Company in any way and did not receive any compensation or products for this review. Also - I do not receive any commission or affiliate fees from any sales.