Making pencil slats starts with cutting logs into blocks called “pencil stock.” These blocks are then sliced into pencil slats with a veneer lathe. The pencil slats are clipped to length and dried in kilns.

After drying, pencil slats are planed to exact thickness. The pencil slats are then fed through a grooving machine. The grooves in pencil slats are half‑round to accept the lead.

Pencil slats are coated with glue on the grooved side. A graphite core is placed between two pencil slats. The assembled pencil slats are pressed together for several hours.

The pressed pencil slats block is then cured in an oven. After curing, the pencil slats block is cut into individual pencils. The cutting process uses steel blades that shape the pencil slats.

The shaped pencil slats are then sanded to remove rough edges. Pencil slats for hexagonal pencils are cut at 120‑degree angles. Round pencils are carved from square pencil slats on a lathe.

The waste from pencil slats is collected and recycled. Some pencil slats are dyed before assembly for colored pencils. The entire process uses thousands of pencil slats per hour. Modern pencil factories produce millions of pencil slats daily.