1. the condition of having more capacity than is needed or can be used effectively
Usage: business; economics

Examples

• The airline industry suffered from overcapacity during the economic downturn.
• Manufacturing overcapacity led to falling prices across the sector.
• The hospital’s overcapacity allowed them to handle the emergency influx of patients.
• Overcapacity in the steel industry resulted in plant closures.
• The company reduced production to address overcapacity issues.
• Global overcapacity in shipping has driven down freight rates.