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

See Examples For:

overcapacity overcapacities

Looking forward, Kedrosky thinks this will cause huge problems with overcapacity, he said.

From MarketWatch ● Sep. 1, 2026

The full consequences of state-driven manufacturing overcapacity have yet to be felt, but the early signs of another deflationary shock, perhaps as serious as the deflation of the real-estate bubble, are rippling through the economy.

From The Wall Street Journal ● Aug. 17, 2026

German automakers are ramping up cost-cutting measures in response to a sluggish European market, overcapacity in the EV sector, and the rising strength of Chinese rivals.

From Barron's ● Aug. 16, 2026

“The market is pricing in more uncertainty today that the rate of AI spending continues for several years,” Kerwin said, noting that there are fears brewing over memory overcapacity.

From MarketWatch ● Aug. 3, 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

“We see overcapacities in China, especially in the chemical sector, which goes to global markets and puts pressure on Europe.”

From The Wall Street Journal ● Sep. 9, 2026

This would help to build a "defensive mechanism against subsidized steel, against global overcapacities," he added.

From Barron's ● Apr. 24, 2026

"Efforts to slash overcapacities in old-fashioned industries, as well as the housing market downturn ... will continue to weigh on overall economic activity," said Nikolaus Keis at UniCredit.

From Reuters ● Jul. 1, 2014