excess capacity

USAGE SUMMARY

The phrase "excess capacity" is correct and usable in written English.
It is typically used in economic or business contexts to refer to a situation where production capability exceeds the current demand for goods or services. Example: "The factory is currently operating at 70% of its capacity, leaving us with significant excess capacity that we can utilize for new projects."

✓ Grammatically correct

News & Media

Formal & Business

Science

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

The result is excess capacity and inventories.

The Economist

Excess capacity still needs to be cut.

The Economist

How much excess capacity was there already?

The Economist

"That reflects excess capacity around the world".

The New York Times

"They had excess capacity," Mr. Chin said.

The New York Times

The biggest factor is excess capacity.

The New York Times

Excess capacity has driven merger booms before.

The New York Times

"Additional opportunities to remove excess capacity do exist," he said.

The New York Times

Eventually, there will be growth to absorb the excess capacity.

The New York Times

The risk is making sure excess capacity can be found.

The New York Times

"It really, really hurts when you have excess capacity".

The New York Times

Expert writing Tips

Best practice

When discussing "excess capacity", clearly define the scope (e.g., industry, specific company) and quantify it whenever possible to provide a clearer understanding of the situation.

Common error

Avoid assuming that "excess capacity" is always negative; it can sometimes provide a strategic advantage, allowing for quick responses to sudden increases in demand or opportunities for diversification.

Linguistic Context

The phrase "excess capacity" functions primarily as a noun phrase, often acting as the subject or object of a sentence. According to Ludwig AI, it is commonly used in economic or business contexts. For instance, "The biggest factor is "excess capacity" (The New York Times).

Expression frequency: Very common

Frequent in

News & Media

66%

Science

18%

Formal & Business

16%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "excess capacity" is a common noun phrase used to describe a situation where an entity's resources or production capabilities exceed current demand. Ludwig AI confirms its correctness and typical usage in economic and business discussions. With a high frequency in news and media, as well as formal business and science contexts, understanding its implications is crucial. When writing about "excess capacity", ensure you quantify it when possible and avoid assuming it's always a negative situation, as strategic use is possible. Related phrases like "surplus capacity" and "unused capacity" offer alternative ways to express the concept.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

surplus capacity

This alternative emphasizes the idea of having more capacity than is required.

unused capacity

Focuses on the portion of capacity that is not being actively utilized.

spare capacity

Highlights the availability of extra capacity for potential future use.

overcapacity

Implies a state where capacity significantly exceeds demand, often leading to negative consequences.

excess production capability

A more descriptive alternative that specifies the nature of the excess.

idle resources

Broader term referring to any resources that are not currently in use due to excess.

unutilized resources

Similar to 'idle resources', emphasizing the lack of active use.

redundant capacity

Suggests that the extra capacity is unnecessary and could be eliminated.

overabundance of resources

Highlights the plentiful availability of resources beyond what is immediately needed.

excess production

Emphasizes the excessive output of goods or services due to the capacity.

FAQs

How is "excess capacity" typically measured?

It's often measured as the difference between potential production or service output and the actual current level, usually expressed as a percentage of potential. For instance, the factory is utilizing 70% of its total manufacturing potential, indicating 30% "excess capacity".

What are some common causes of "excess capacity"?

Common causes include decreased demand (often due to economic downturns), technological advancements that increase production efficiency, and overinvestment in anticipation of future growth that doesn't materialize.

What strategies can businesses use to deal with "excess capacity"?

Strategies include reducing production, diversifying into new markets or products, consolidating operations (e.g., closing plants), or selling off underutilized assets. They can also try to stimulate demand through aggressive marketing or price reductions.

How does "excess capacity" affect market prices?

Generally, "excess capacity" tends to put downward pressure on prices, as businesses compete more fiercely to utilize their available resources and maintain revenue. This can lead to price wars and reduced profitability.