Definition of overcapacity in English:



  • [mass noun] The situation in which an industry or factory cannot sell as much as its plant is designed to produce.

    ‘margins were squeezed by overcapacity in the market’
    • ‘In this steep economic downturn, markets are flushing out overcapacity, winnowing the weak from the strong.’
    • ‘Demand has been hurt by the problems at the airlines, the telecom bust, and overcapacity in many industries.’
    • ‘In a world of overcapacity, every company is desperate to sell what it can, if only to help offset its fixed costs.’
    • ‘In addition, the long bull market has led to overcapacity.’
    • ‘European mass-market car makers are struggling in the face of intense price competition brought on partly by overcapacity in the industry.’
    • ‘And it now looks like he may bite the bullet and close at least a couple of auto plants to reduce GM's overcapacity.’
    • ‘Maybe some industry somewhere isn't loaded with global overcapacity, but I'm still looking for it.’
    • ‘In both cases, overcapacity led to declining profit rates.’
    • ‘The worldwide overcapacity in steel is larger than the U.S. steel industry.’
    • ‘Now, if they're in an industry suffering from overcapacity and bloated asset prices, they should worry if vultures aren't in sight.’
    • ‘The auto industry faces a global crisis of overcapacity and every major automaker is involved in mergers, corporate restructuring and downsizing.’
    • ‘Just about every industry faces overcapacity.’
    • ‘It faces dramatic industry overcapacity and near-flat worldwide demand.’
    • ‘If the economy slows, overcapacity could crunch profits in China’
    • ‘The move has essentially sabotaged Germany's construction industry, which is plagued by massive overcapacity.’
    • ‘Concerned about overcapacity in the auto industry, policy makers in Beijing have been engaged in a lengthy effort to curb auto loans.’
    • ‘Industry overcapacity has cut profits, driven consolidation and increased the tension between automakers and suppliers.’
    • ‘The hope is that, after so many years of cutting back, the industry has shed most of its overcapacity and is poised for an upturn as demand rebounds.’
    • ‘The company needs to address, and quickly, efficiency improvements in reaction to the rapid competition that has built up as a result of overcapacity within the industry.’
    • ‘Management claims that its Brazilian plants suffer from overcapacity under conditions in which the internal market for autos has declined.’