overcapacity


Also found in: Dictionary, Wikipedia.

overcapacity

a situation in which a firm or industry has too much production CAPACITY on hand relative to current demand levels. This may be only temporary because of a downturn in the BUSINESS CYCLE. Alternatively, the decline in demand may be permanent (see PRODUCT LIFE CYCLE) or due to the industry having overinvested in new plant relative to long-run demand potential. In this case, overcapacity, leading to greater competition for limited sales is often removed by the disappearance of inefficient firms from the industry, or by RATIONALIZATION schemes involving the MERGER of firms and closure of redundant plant.

overcapacity

see EXCESS CAPACITY.
Mentioned in ?
References in periodicals archive ?
He said the project aims to prevent another overcapacity in a certain grid, like that of Negros Island, to happen again.
Department of Energy taps US agencies for renewable energy site mapping
Industry data on developed markets non-food retailers show US store-based incumbents are suffering due to disruption by other specialty, off-price retailers such as TJX and Ross Stores, and fast-fashion players, in addition to online rivals and significant physical retail space overcapacity.
Key factors differentiate risks to European retailers
"All major economies have a special responsibility to show leadership on this front, demonstrating we respect the rule book as we seek to open markets and embrace opportunities." Roy Rickhuss, of steel union Community, said: "When Theresa May sits down with the Chinese, she needs to hold them to their word on tackling global overcapacity, which has already cost thousands of UK steel jobs."
May promises to get tough with Chinese over steel dumping
"Global overcapacity is a major factor behind the steel crisis and has already cost us thousands of jobs.
Government urged to agree action on Chinese steelmaking
'There is still overcapacity in the market,' Bautista had said.
PAL resumes flights to Abu Dhabi
A slowing economy and problems with industrial overcapacity have reduced investment opportunities, said Fan Gang, a Chinese central bank vice governor.
Chinese central bank vice governor warns about slow economy
The handling of the stock market and currency reform has revealed serious leadership and policy shortcomings, but the management of the real economy over the last several years seems to be proof of nothing less than a system-generated overcapacity crisis.
China's Attempt To Export Its Way Out Of Glut Threatens World Economy
Nine other provinces have yet to make any dent in their coal production overcapacity.
China cuts coal capacity
Premier Li insisted that China was taking strong and determined measures to tackle the problem of overcapacity, adding that China does not use subsidies to give its industries a competitive edge.
China vows to curb overcapacity in steel
RAM Ratings views the implementation of structural reforms to address crucial issues in China, such as industrial overcapacity, highly leveraged and inefficient government-linked entities (GLE), and local government (LG) fiscal imbalances to be challenging.
RAM Ratings: China's structural reforms point to sustainable growth
Meanwhile, unveiling its prioritized tasks for 2016, the central bank has said monetary policy will help slash overcapacity, cut stockpiles, reduce leverage, lower costs of doing business and fix shortcomings, with a focus on reducing steel and coal overcapacity, according to report by state-run Xinhua News Agency on Sunday.
China central bank injects more cash into market
of Irving, Texas, said Tuesday that it will close its T-post fence operations in Magnolia by the end of the third quarter, blaming "global steel overcapacity" and "unfair trade."
Texas Company to close plant in Magnolia

Financial browser ?
Full browser ?