What is another word for excess capacity?
Pronunciation: [ɛksˈɛs kəpˈasɪti] (IPA) 
Excess capacity refers to a situation where the production capacity of a business exceeds its current level of demand. In other words, it is the unused or idle capacity which a company has on hand. There are several synonyms for the term excess capacity, such as surplus capacity, spare capacity, unused capacity, idle capacity and slack capacity. These interchangeable terms are often used in economics, finance, and management to refer to the same concept of having unused production capacity. The presence of excess capacity can be both an advantage and disadvantage depending on the specific circumstances, as it offers flexibility in meeting unexpected demand, but also raises the costs of operations.
