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

DBS expects year-to-date investment to contract 2.0% in May from a year earlier, as companies continue to navigate the government’s ongoing crackdown on overcapacity and aggressive price competition.

From The Wall Street Journal • Jun. 12, 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

U.K. steelmakers face structural disadvantages from global overcapacity, fierce price competition and high energy costs, while uncertainty over ownership has deterred investment and modernization, Sawicz says.

From The Wall Street Journal • May 12, 2026

But they also often do drive innovation faster and faster, and the sheer overcapacity that they spur—whether it is in railroad lines or automobiles—can create its own unintended positive consequences.

From "The World Is Flat" by Thomas L. Friedman