overcapacity

American  

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

noun

overcapacities plural

1. capacity beyond what is normal, allowed, or desirable.

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overcapacity British  

/ ˌəʊvəkəˈpæsɪtɪ /

noun

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

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Other Word Forms

Noun Inflected Forms

• overcapacities
  plural

Etymology

Origin of overcapacity

First recorded in 1925–30; over- + capacity

Example Sentences

It has in recent years capped annual production at 45 million tons to curb industrial overcapacity.

From The Wall Street Journal • May 29, 2026

Growth has slowed after years of expansion, while overcapacity and an intense price war are squeezing profits across the industry.

From BBC • May 27, 2026

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

Rhodium reports that a 2025 directive promised to address petrochemical overcapacity, but only plants more than 20 years old were targeted, accounting for 5% to 6% of capacity.

From The Wall Street Journal • May 15, 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