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overcapacity

American

[oh-ver-kuh-pas-i-tee] / ˌoʊ vər kəˈpæs ɪ ti /

noun

capacity beyond what is normal, allowed, or desirable.

overcapacity British

/ ˌəʊvəkəˈpæsɪtɪ /

noun

the situation in which an industry or business cannot sell as much as it produces

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Etymology

Origin of overcapacity

First recorded in 1925–30; over- + capacity

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Busts occur when capital spending starts declining – which could be from rising financing costs, overcapacity, asset price reflexivity, cash-flow delays or any combination.

From MarketWatch • May 27, 2026

US authorities have opened investigations into dozens of trading partners over forced labor and overcapacity allegations -- which could lead to fresh tariffs or other action.

From Barron's • May 12, 2026

Low-cost providers also did not catch the tailwind that the majors got from surging demand for international travel, and they found themselves in a domestic market struggling with overcapacity, Cunningham noted.

From MarketWatch • May 4, 2026

The speed of the market decline combined with industry overcapacity, volume declines and supply disruption hurt Barry Callebaut’s earnings and led it to adjust its profitability outlook, he added.

From The Wall Street Journal • Apr. 16, 2026

Unlike other forms of Internet overinvestment, it was permanent: Once the fiber cables were laid, no one was going to dig them up and thereby eliminate the overcapacity.

From "The World Is Flat" by Thomas L. Friedman

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023