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.

---

overcapacity British  

/ ˌəʊvəkəˈpæsɪtɪ /

noun

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

---

Etymology

Origin of overcapacity

First recorded in 1925–30; over- + capacity

Example Sentences

The fall in exports to both China and the United States "is causing massive overcapacity across the entire German automotive industry," said EY auto industry expert Constantin M. Gall.

From Barron's • Mar. 20, 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

Its Commerce Ministry said Friday that the U.S. had no right to unilaterally determine whether a trading partner had overcapacity.

From The Wall Street Journal • Mar. 14, 2026

"However, the sources of such overcapacity are well identified, and they do not lie in Europe," the spokesman added.

From Barron's • Mar. 12, 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