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

But the sector risks overcapacity as production scales up quickly without actual orders, Goldman Sachs warned recently.

From Barron's

The bank expects heavy-duty truck sales to fall 3% in Europe and rise 2% in North America in 2026, but it expects higher risks in North America due to overcapacity and tariffs.

From The Wall Street Journal

"We didn't only discuss bilateral issues, but also some of the challenges we are facing together: the overcapacity... China's role in the global economy and other issues where we have to join forces," said Danish Foreign Minister Lars Lokke Rasmussen, whose country holds the rotating EU presidency.

From Barron's

Brussels hoped the proposal would then see the EU team up with Washington to tackle Chinese overcapacity, and Sefcovic had been pushing his US counterparts agree on steel import quotas.

From Barron's

The EU wants a broader "metals alliance" with Washington to ring-fence their respective economies from Chinese overcapacity.

From Barron's