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

It was an aging company in an aging industry in a world where global overcapacity led to its decline.

From MarketWatch ● Aug. 5, 2026

But it almost certainly would trigger a new round of deflation in the domestic economy, which already is grappling with the collapse of real-estate prices and disinflation triggered by overcapacity in many industries.

From The Wall Street Journal ● Jul. 30, 2026

The investigation into overcapacity concerns was announced in March and is targeting 16 economies, including major trading partners like the E.U.,

From MarketWatch ● Jul. 24, 2026

Concerns about potential data center overcapacity and hyperscaler spending slowdowns temper Innio’s long-term growth prospects.

From Barron's ● Jun. 29, 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

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