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

China’s record trade surplus also reinforces Beijing’s continued dependence on exporting its overcapacity to the rest of the world to steady its economic growth.

From Barron's

"Overcapacity is an issue that is affecting a lot of different economies."

From BBC

Not long ago, investors were despondent as stocks related to artificial intelligence pulled back on bubble fears and worries about potential overcapacity.

From Barron's

“By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond,” CEO Mary Barra, who maintained that EVs are GM’s “North Star,” said in an October letter to shareholders.

From MarketWatch

"The big picture is that the structural headwinds from the property downturn and industrial overcapacity are set to persist in 2026," he added.

From Barron's