diff --git a/lib/pipeline/webpackProcess.js b/lib/pipeline/webpackProcess.js
index b06460e9c..e6b45f290 100644
--- a/lib/pipeline/webpackProcess.js
+++ b/lib/pipeline/webpackProcess.js
@@ -36,13 +36,20 @@ class WebpackProcess extends ProcessWrapper {
   }
 
   webpackRun(filename, options, includeModules, importsList, detectErrors, realCwd, callback) {
+    const self = this;
     let defaultOptions = {
+      mode: self.env === 'development' ? 'none' : 'production',
       entry: fs.dappPath(filename),
       output: {
+        globalObject: 'typeof self !== \'undefined\' ? self : this',
+        libraryExport: 'default',
         libraryTarget: 'umd',
         path: fs.dappPath('.embark'),
-        filename: filename
+        filename: filename,
+        umdNamedDefine: true
       },
+      profile: true,
+      stats: 'verbose',
       resolve: {
         alias: importsList,
         modules: [
@@ -86,17 +93,40 @@ class WebpackProcess extends ProcessWrapper {
             loader: "babel-loader",
             exclude: /(node_modules|bower_components)/,
             options: {
-              extends: path.join(realCwd, '.babelrc'),
-              presets: ['babel-preset-es2016', 'babel-preset-es2017', 'babel-preset-react'].map(require.resolve),
-              plugins: ["babel-plugin-webpack-aliases"].map(require.resolve),
+              presets: [
+                [
+                  "@babel/preset-env", {
+                    modules: false,
+                    targets: {
+                      browsers: ["last 1 version", "not dead", "> 0.2%"]
+                    }
+                  }
+                ],
+                "@babel/preset-react"
+              ].map(pkg => {
+                if (Array.isArray(pkg)) {
+                  let _pkg = pkg[0];
+                  pkg[0] = require.resolve(_pkg);
+                  return pkg;
+                } else {
+                  return require.resolve(pkg);
+                }
+              }),
+              plugins: [
+                "@babel/plugin-transform-runtime",
+                "babel-plugin-webpack-aliases"
+              ].map(require.resolve),
               compact: false
             }
           }
         ]
       };
-    }
 
+      let dappBabelrc = path.join(realCwd, '.babelrc');
+      if (fs.existsSync(dappBabelrc)) {
+        webpackOptions.module.rules[3].options.extends = dappBabelrc;
       }
+    }
 
     webpack(webpackOptions).run((err, stats) => {
       async.waterfall([