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 • Mar. 26, 2026

"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 • Mar. 18, 2026

State-backed investment has already led to much criticism, and overcapacity in industries such as electric vehicles.

From BBC • Mar. 11, 2026

Having a target range aligns better with officials’ efforts to control industrial overcapacity and advance structural reforms, Société Générale economists said.

From The Wall Street Journal • Mar. 2, 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