Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. (noun)
American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
Use "overcapacity" in a sentence
"And when they do stop, they'll drown in overcapacity, and they won't be building new skyscrapers for a very long time."
"Yes, I think the main difference is that when we went into this last time, there was considerable and long-term overcapacity still in the marketplace."
"But that didn't address broader industry concerns, such as overcapacity in the auto-parts industry."