The more excess capacity that exists in an industry, the more intense pricing pressures will be. This indicator can change rapidly over time as demand moves with the business cycle or as companies build or shutter plants. To a great extent, this indicator is largely outside the company’s control. - See more at: http://www.smallbizchicago.com/2011/02/how-to-make-appropriate-pricing-decisions/#sthash.DbrQuFIq.dpuf