overcapacity
noun[U]
uk/ˌəʊvəkəˈpæsəti/usECONOMICS,PRODUCTION
asituationin whichcompaniesin anindustrycan make andsupplymoreproductsthancustomersbuyor areexpectedtobuy:
Heblamedtheprofitcollapseon overcapacity whichledto theexcessivediscountingofholidaypackages.
Compare
spare capacity
undercapacity