"Excess capacity" refers to a situation where a company or industry has the ability to produce more goods or services than there is demand for. It means they have extra resources and facilities that are not being fully utilized or generating profit.
This is unlikely with the amount of excess capacity in the global economy. (moneysense.ca)
Low core inflation reflects muted price pressures across a wide range of goods and services, consistent with material excess capacity in the economy. (bankofcanada.ca)
From a broader economic standpoint low prices are a requirement to cut supply and reduce excess capacity across a range of commodities. (investmenteurope.net)