overcapacity Definition
- 1a situation in which a company or industry has more production capacity than it needs to meet demand for its products or services
- 2a situation in which there is more of something than can be used or dealt with
Using overcapacity: Examples
Take a moment to familiarize yourself with how "overcapacity" can be used in various situations through the following examples!
Example
The airline industry is facing overcapacity due to the decrease in travel demand.
Example
The factory had to shut down due to overcapacity.
Example
The storage room was filled with overcapacity of supplies.
overcapacity Synonyms and Antonyms
Synonyms for overcapacity
- redundancy
- excess capacity
- surplus capacity
Phrases with overcapacity
a situation where an industry or market is producing more goods or services than it can sell, leading to a decline in prices and profits
Example
The overcapacity crisis in the steel industry led to massive layoffs.
a fee charged by a company to customers who cancel their orders after the company has already produced the goods
Example
The company imposed an overcapacity charge on the customer who cancelled their order after the goods were produced.
the use of excess production capacity to produce additional goods or services
Example
The company increased its profits by using overcapacity utilization to produce new products.
Summary: overcapacity in Brief
The term 'overcapacity' [ˌəʊvəkəˈpæsɪti] refers to a situation where a company or industry has more production capacity than it needs to meet demand for its products or services. It can also refer to a situation where there is more of something than can be used or dealt with. Examples include the airline industry facing overcapacity due to decreased travel demand and factories shutting down due to overcapacity. Phrases like 'overcapacity crisis' describe situations where an industry produces more than it can sell, while 'overcapacity utilization' describes using excess capacity to produce additional goods or services.
