From Longman Dictionary of Contemporary Englishovercapacityo‧ver‧ca‧pa‧ci‧ty /ˌəʊvəkəˈpæsəti $ ˌoʊvər-/ noun [singular, uncountable] the situation in which an industry or factory cannot sell as much as it produces
Examples from the Corpus
overcapacity• We failed to lead the race for new products and we contributed to and suffered from heavy overcapacity.• One of the most critical problems is overcapacity, believes Butler.• What to bankers looks like overcapacity, consumers may call healthy rivalry.• Moreover, overcapacity reduced margins during the 1980s when the real costs of construction rose, thus creating higher barriers to entry.• Refining overcapacity and falling profit margins are among the chief reasons, they said.• This will not be easy with today's overcapacity.• Alarmists see the overcapacity as a sign of impending depression.From Longman Business Dictionaryovercapacityo‧ver‧ca‧pa‧ci‧ty /ˌəʊvəkəˈpæsətiˌoʊvər-/ noun [uncountable] MANUFACTURING when there are more factories, buildings etc that are able to produce a particular product or service than there is demand for itThe banks are hurt by the industry’s overcapacity, and fear that there will be too many banks chasing too few customers. → compare spare capacity under capacity 