overcapacity

[oh-ver-kuh-pas-i-tee]

noun

plural

overcapacities 

1. capacity beyond what is normal, allowed, or desirable.

overcapacity

/ ˌəʊvəkəˈpæsɪtɪ /

noun

1. the situation in which an industry or business cannot sell as much as it produces

Word History and Origins

Origin of overcapacity¹

First recorded in 1925–30; over- + capacity

Example Sentences

“There’s an overcapacity of rentals,” McCausland, who met his wife on the island in 1972, said in an interview.

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He points to a government campaign launched earlier this year and aimed at reducing overcapacity and intense competition among domestic companies via regulation and policies like production caps.

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China’s government is implementing policies to reduce overcapacity and competition, making its stock market more investable.

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"For decades, we've been facing a competitor who has very consistently distorted free markets, used industrial subsidies, created overcapacity, and undermined fair trade," said Abigail Hunter, executive director of the Washington-based Center for Critical Minerals Strategy.

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What’s Next: When Ford CEO Jim Farley reported third-quarter numbers Thursday he warned that competition is getting tougher with Chinese auto makers expanding globally and the industry facing lower returns due to EV overcapacity and global pressures.

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