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Overcapacity: meaning, definitions and examples

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overcapacity

 

[ oʊvərkəˈpæsɪti ]

Noun
Context #1 | Noun

business context

Overcapacity refers to a situation where production capacity exceeds demand. This can lead to inefficiencies and increased costs for businesses, as they may produce more goods than the market can absorb. Managing overcapacity is crucial for companies to maintain profitability and competitiveness.

Synonyms

excess capacity, overproduction, surplus capacity

Examples of usage

  • The factory faced overcapacity issues last year.
  • Overcapacity in the airline industry led to lower ticket prices.
  • Companies are struggling with overcapacity in manufacturing.
  • The market downturn resulted in significant overcapacity.
  • Addressing overcapacity can improve operational efficiency.

Translations

Translations of the word "overcapacity" in other languages:

🇵🇹 sobrecarga

🇮🇳 अधिक क्षमता

🇩🇪 Überkapazität

🇮🇩 kelebihan kapasitas

🇺🇦 надмірна потужність

🇵🇱 przepełnienie

🇯🇵 過剰容量

🇫🇷 surdimensionnement

🇪🇸 sobrecapacidad

🇹🇷 aşırı kapasite

🇰🇷 과잉 용량

🇸🇦 زيادة السعة

🇨🇿 přetížení

🇸🇰 preťaženie

🇨🇳 超载

🇸🇮 preobremenitev

🇮🇸 ofgnar

🇰🇿 артық қуат

🇬🇪 მჭიდროობა

🇦🇿 artıq güc

🇲🇽 sobrecapacidad

Word origin

The term 'overcapacity' combines the prefix 'over-' which means 'excessive' or 'beyond,' and the word 'capacity,' which pertains to the maximum amount that something can contain or produce. The emergence of this term can be traced back to the industrialization era when manufacturing capabilities began to outpace market demands. As industries expanded and production technology advanced, instances of overcapacity became more prevalent. Definitions of overcapacity evolved with economic theories and market dynamics, reflecting how different sectors, such as manufacturing, services, and agriculture, navigate their production capabilities relative to demand. Understanding and managing overcapacity has become a focal point in strategic planning, especially for businesses looking to enhance profitability and efficiency in an unpredictable economic climate.

Word Frequency Rank

This word's position of #31,538 indicates it's among the more rare English words. While understanding it broadens your vocabulary, focus on more common words first.