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overcapacity

overcapacity

3 5.7
A situation in an industry where production is higher than demand
  • noun
  • /ˌoʊvərˈkæpəˌsɪti/
  • Specialized
translation icon : sobrecapacidad
  • The government's report highlighted overcapacity in the shipping industry, which has led to financial losses for many companies.
  • steel overcapacity
  • overcapacity in the industry
  • overcapacity worldwide

Without this overcapacity, companies like YouTube and Netflix would not be viable today.

Examples

  • Overcapacity has affected aircraft manufacturing in the industrialized countries.

    Academic text (1996)
  • I think the overcapacity issue lies with developed nations.

    Blog text (13)
  • The report identified the overcapacity of steel production in East and Southeast Asia.

    Academic text (2003)
  • Our industry suffers substantially from overcapacity.

    Academic text (1991)
  • The region has been suffering from a glut of overcapacity as demand evaporates in the face of brutal economic conditions.

    Blog text (15)
  • European reliance on the car industry as an engine of economic growth and earner of foreign exchange led, in the late 1970s, to a large overcapacity in car manufacturing and aggressive competition among what have remained largely national trade names.

    Academic text (1990)
  • By the mid-1990s, China had become the world's biggest exporter of textiles, but it was burdened by serious overcapacity.

    Academic text (2005)
  • The factory is dealing with significant overcapacity due to a decrease in demand for its products.

  • Many businesses in the textile industry face overcapacity, forcing them to lower prices to attract customers.

Synonyms

overabundance
vsovercapacity
7 5.7

Too much of something that is not needed

is about unused ability in industry, not general excess of things
overproduction
vsovercapacity
5 4.1

Making more goods than people can buy

stresses spare ability to make items rather than the extra output itself
oversupply
vsovercapacity
4 4.5

Too much of something like goods or houses that makes prices fall

refers to unused ability to produce rather than excess finished goods
oversaturation
vsovercapacity
6.5

There are more products or shops than customers, causing low sales

focuses on idle ability to make products rather than market fullness

How Full

overcapacity
  • Specialized
3 5.7

Surface Forms

overcapacity singular

Morphology

overcapacity = capacity (transparent) = over + capacity

Applied to industrial/economic contexts, the formation remains a straightforward 'over-' + 'capacity' meaning excess production capability.

Etymology

In business, the noun overcapacity is made from over ('too much') and capacity ('how much something can hold' or 'how much it can make'), similar to capable. It means an industry or company can 'make' more goods than people want to buy, which leads to waste and lower prices.