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Musgrave Pencil Company

A family-owned American pencil manufacturer making branded, custom, and white-label writing instruments in Shelbyville, Tennessee.

Last updated October 14, 2026

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Overview

Musgrave Pencil Company is an American pencil manufacturer based in Shelbyville, Tennessee. Founded in 1916 by Col. James Raford Musgrave, the company began by processing eastern red cedar into pencil slats for export to European pencil makers. Its location in Middle Tennessee gave it access to large quantities of cedar fencing and agricultural timber, while the nearby port of New Orleans provided an outlet for overseas shipments. Between 1916 and 1923, Musgrave workers collected weathered cedar fence posts and rails, sometimes replacing farmers’ wooden fences with wire fencing in exchange for the old timber. The aged, straight-grained wood was particularly suitable for pencil casings because it was dry, light, workable, and resistant to decay. The company also found a use for material that could not become pencil slats. Cedar scraps and shavings were distilled into aromatic cedar oil and sold to perfume companies. This combination of wood processing and by-product utilization helped Musgrave maintain its business during its early years. World War I disrupted international trade and made industrial supplies harder to obtain, affecting companies that depended on European customers and imported production equipment. Musgrave moved into finished-pencil manufacturing in 1923. After the war and the reopening of European trade, James Musgrave traveled to Europe and exchanged American pencil slats for machinery and technical knowledge. A German machinist based in St. Louis assisted with installation and startup at the Shelbyville factory. The company survived the difficult Depression period partly by expanding into advertising pencils, an important early development in promotional merchandise. During World War II, women operated the factory while many male employees served in the armed forces, allowing the plant to continue supplying pencils for education, office work, and wartime administration. Shelbyville became a significant center of American pencil manufacturing. Musgrave assisted Empire Pencil Company when Empire established a nearby factory, and the concentration of pencil producers eventually led Tennessee Governor Buford Ellington to describe Shelbyville as “The Pencil City.” The local industry shaped employment, manufacturing expertise, and the town’s identity for much of the twentieth century. Changes in wood supply and industrial economics altered Musgrave’s production methods. Eastern red cedar became increasingly scarce by the late 1920s, and western incense cedar from California and Oregon became the preferred material for high-quality pencil casings. In the late 1950s and early 1960s, rising lumber prices associated with furniture manufacturing made it uneconomical for Musgrave to cut all of its own slats from logs. Like other manufacturers, it increasingly purchased prepared slats shipped from the West Coast. In later production, basswood became a common casing material, while incense cedar remained available for selected custom products. The American pencil industry contracted sharply in the early 1990s as lower-priced Chinese imports gained market share. Musgrave responded with layoffs and broad salary reductions, while other Shelbyville manufacturers closed or moved production abroad. American timber was sometimes shipped to China for processing into slats before returning to United States pencil factories, illustrating the increasingly international supply chain. In the contemporary market, Musgrave combines its own product range with contract manufacturing. It produces school pencils, office pencils, artist-grade pencils, and heritage-oriented products, while also making custom and white-label pencils for advertisers, institutions, brands, and other customers. Its capabilities include round and hexagonal formats as well as carpenter, golf, jumbo, and thinner bridge pencils. The company has retained a Tennessee manufacturing identity and in 2019 became the first pencil manufacturer in nearly a century to produce pencils from Tennessee red cedar. The business has benefited from renewed interest in handwriting, drawing, analog learning, and locally made or heritage products. Approximately 90 people work at the factory and office, according to the cited reference material.

History

Musgrave Pencil Company was established in Shelbyville, Tennessee, in 1916 by Col. James Raford Musgrave. Its original business was not finished pencils but the preparation of cedar slats for European pencil manufacturers. Shelbyville’s surrounding farms contained numerous cedar rail fences, and Musgrave workers collected the weathered posts and rails, replacing them with wire fencing when necessary. The naturally dried, straight wood was well suited to pencil casings. The company packed slats in burlap sacks and exported them through New Orleans, despite Shelbyville’s inland location. Musgrave also extracted cedar oil from unusable wood and shavings. The aromatic oil was sold for use in perfumes, providing an additional revenue stream from the same raw material. World War I interrupted export relationships and made supplies and equipment more difficult to obtain. After trade with Europe resumed, Musgrave traveled there and obtained pencil-making machinery through barter. A machinist from St. Louis helped install and operate the equipment, enabling the company to begin manufacturing complete pencils in 1923. During the late 1920s, eastern red cedar became less available. Pencil makers adopted incense cedar from California and Oregon because it could be machined, sharpened, lacquered, and printed effectively. The wood was transported by rail to Shelbyville, where it was stacked and dried before being made into slats. Later, rising lumber costs in the late 1950s and early 1960s made in-house log cutting uneconomical, so Musgrave increasingly bought ready-made slats from western suppliers. The Depression reduced demand for ordinary pencils, but Musgrave expanded into advertising pencils and helped establish promotional pencils as a significant business. During World War II, women maintained production while many male employees served overseas. The company’s continued operation contributed to Shelbyville’s development as a pencil-manufacturing center. Empire Pencil Company later moved a factory to Shelbyville, and Musgrave assisted with its startup. The presence of several producers led to the town’s “Pencil City” nickname. The industry faced a major decline in the early 1990s when inexpensive Chinese pencils entered the American market in large quantities. Musgrave reduced payroll costs and employment, while other domestic producers shut down or transferred production abroad. The supply chain also changed: logs and slats could move between the United States and China before reaching American manufacturers. Musgrave continued using some West Coast slats, with basswood common in its products and incense cedar used for selected custom work. In the modern period, Musgrave has operated as a family-owned manufacturer with both proprietary and contract production. Its own range includes pencils for students, offices, artists, and heritage-product buyers. Its contract business supplies custom-printed and white-label pencils for other organizations and brands. The factory can produce multiple shapes and specialty formats, including carpenter, golf, jumbo, and bridge pencils. In 2019, Musgrave introduced pencils made from Tennessee red cedar, reviving a local material associated with its earliest history. The company’s continued activity reflects both the persistence of American pencil manufacturing and renewed consumer interest in handwriting, drawing, education, and analog tools.

  • 2019

    Return to Tennessee red cedar

    [1]

    Musgrave began producing pencils from Tennessee red cedar, reviving a material associated with its early manufacturing history.

  • 1990

    Domestic pencil industry contracts

    [1]

    Chinese imports placed substantial pressure on American pencil production, leading Musgrave to reduce employment and compensation costs.

  • 1950

    Shelbyville gains the Pencil City identity

    [1]

    The concentration of pencil manufacturers in Shelbyville contributed to the town’s recognition as “The Pencil City.”

  • 1940

    Factory production continues during World War II

    [1]

    Women maintained factory operations while many male employees served in the United States armed forces.

  • 1923

    Begins manufacturing complete pencils

    [1]

    After obtaining European pencil-making machinery and technical assistance, Musgrave began producing finished pencils rather than only supplying slats.

  • 1920

    Expansion into advertising pencils

    [1]

    During the Depression era, Musgrave developed advertising pencils into an important part of its business as consumers reduced purchases of ordinary pencils.

  • 1916

    Company founded in Shelbyville

    [1]

    Col. James Raford Musgrave founded the company in Shelbyville, Tennessee, initially processing cedar into pencil slats for export.

Products and positioning

An American heritage pencil manufacturer combining domestic production, custom manufacturing, promotional products, and traditional wood-cased writing instruments.

  • Education

    School pencils

    Musgrave produces a broad range of pencils intended for school-aged users. These products support everyday writing, classroom exercises, and general student use, and form part of the company’s current proprietary product range.

  • Writing instruments

    Office pencils

    The company makes higher-quality wood-cased pencils for office and general professional environments. These products sit alongside its school and promotional lines and extend the brand beyond basic classroom stationery.

  • Art supplies

    Artist-grade pencils

    Musgrave’s range includes graded pencils for artists and drawing users. These pencils are designed for work requiring varied graphite grades and controlled mark-making rather than only routine writing.

  • Premium heritage pencil · 2019

    Tennessee Red

    Tennessee Red is a premium Musgrave pencil associated with the company’s return to Tennessee red cedar. It represents the brand’s effort to connect contemporary production with the regional wood and manufacturing traditions of its early history.

  • Premium pencil

    Harvest Pro

    Harvest Pro is one of Musgrave’s two identified premium pencil offerings. It is part of the company’s contemporary branded range, which complements its school, office, artist, and contract-manufactured products.

  • Contract manufacturing

    Custom and white-label pencils

    Custom and white-label production remains a major part of Musgrave’s business. The company makes branded pencils for advertisers and other organizations, including round and hexagonal formats as well as specialty carpenter, golf, jumbo, and bridge pencils.

Brand decisions

  • 2019

    Introduced Tennessee red cedar pencilsProduct launch

    Background

    The company sought to reinforce its Tennessee manufacturing identity and revive a wood species connected to its early history.

    Action taken

    Musgrave began making pencils from Tennessee red cedar, making it the first pencil manufacturer in nearly a century to do so.

    Aftermath

    The initiative strengthened the company’s heritage positioning and complemented its broader range of branded, custom, and white-label pencils.

  • 1990

    Adjusted operations in response to import competitionStrategy

    Background

    Low-priced Chinese pencil imports put significant pressure on American manufacturers during the early 1990s.

    Action taken

    Musgrave reduced salaries across the company and laid off some employees while continuing domestic production.

    Aftermath

    The company survived while several other Shelbyville pencil businesses closed or moved production overseas.

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