overcapacity

American  

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

noun

plural

overcapacities

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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Etymology

Origin of overcapacity

First recorded in 1925–30; over- + capacity

Example Sentences

European Trade Commissioner Maros Sefcovic called Monday for "serious" reform of the organisation, insisting that "the level playing field, overcapacity and market policies must be better tackled than in the past".

From Barron's

The fall in exports to both China and the United States "is causing massive overcapacity across the entire German automotive industry," said EY auto industry expert Constantin M. Gall.

From Barron's

"This is a crucial moment: with global markets distorted by overcapacity and subsidy, a clear and ambitious domestic strategy is exactly what is required to ensure steelmaking not only survives in the UK but thrives."

From BBC

The crisis comes as Japan and South Korea were already closing aging petrochemical facilities because of chronic overcapacity in China, a country with far more competitive infrastructure.

From Barron's

The International Monetary Fund has called out China’s reliance on exports, driven by domestic overcapacity and weak demand at home, as a source of global imbalances and trade tensions.

From Barron's