diff --git a/gulpfile.js b/gulpfile.js
index af4fdce0..8fe5bf9c 100644
--- a/gulpfile.js
+++ b/gulpfile.js
@@ -20,7 +20,7 @@ const webpack = require('webpack-stream');
 
 const buildDir = process.env.BUILD_DIR || 'build';
 const tsProject = ts.createProject('tsconfig.json');
-const srcDir = tsProject.config.compilerOptions.rootDir;
+let srcDir = tsProject.config.compilerOptions.rootDir;
 let outDir = tsProject.config.compilerOptions.outDir;
 
 const addons = fs.readdirSync(`${__dirname}/src/addons`);
@@ -31,58 +31,19 @@ if (path.normalize(outDir).indexOf(__dirname) !== 0) {
   outDir = `${__dirname}/${path.normalize(outDir)}`;
 }
 
-/**
- * Compile TypeScript sources to JavaScript files and create a source map file for each TypeScript
- * file compiled.
- */
-gulp.task('tsc', function () {
-  // Remove the ${outDir}/ directory to prevent confusion if files were deleted in ${srcDir}/
-  fs.emptyDirSync(`${outDir}`);
+gulp.task('css', function() {
+  return gulp.src(`${srcDir}/**/*.css`).pipe(gulp.dest(outDir));
+});
 
-  // Build all TypeScript files (including tests) to ${outDir}/, based on the configuration defined in
-  // `tsconfig.json`.
-  let tsResult = tsProject.src().pipe(sourcemaps.init()).pipe(tsProject());
-  let tsc = merge(
-    tsResult.js.pipe(sourcemaps.write('.', {includeContent: false, sourceRoot: ''})).pipe(gulp.dest(outDir)),
-    tsResult.dts.pipe(sourcemaps.write('.', {includeContent: false, sourceRoot: ''})).pipe(gulp.dest(outDir))
-  );
-
-  let addonStreams = addons.map(function(addon) {
-    fs.emptyDirSync(`${outDir}/addons/${addon}`);
-
-    let tsProjectAddon = ts.createProject(`./src/addons/${addon}/tsconfig.json`);
-    let tsResultAddon = tsProjectAddon.src().pipe(sourcemaps.init()).pipe(tsProjectAddon());
-    let tscAddon = merge(
-      tsResultAddon.js
-        .pipe(sourcemaps.write('.', {includeContent: false, sourceRoot: ''}))
-        .pipe(gulp.dest(`${outDir}/addons/${addon}`)),
-      tsResultAddon.dts
-        .pipe(sourcemaps.write('.', {includeContent: false, sourceRoot: ''}))
-        .pipe(gulp.dest(`${outDir}/addons/${addon}`))
-    )
-
-    return tscAddon;
-  });
-
-  // Copy all addons from ${srcDir}/ to ${outDir}/
-  let copyAddons = gulp.src([
-    `${srcDir}/addons/**/**`
-  ]).pipe(gulp.dest(`${outDir}/addons`));
-
-  // Copy stylesheets from ${srcDir}/ to ${outDir}/
-  let copyStylesheets = gulp.src(`${srcDir}/**/*.css`).pipe(gulp.dest(outDir));
-
-  // Join all streams into a single array
-  let streams = [tsc].concat(addonStreams).concat([copyAddons, copyStylesheets]);
-
-  return merge.apply(this, streams);
+gulp.task('watch-css', function() {
+  return gulp.watch(`${srcDir}/**/*.css`, ['css']);
 });
 
 /**
  * Bundle JavaScript files produced by the `tsc` task, into a single file named `xterm.js` with
  * Browserify.
  */
-gulp.task('browserify', ['tsc'], function() {
+gulp.task('browserify', function() {
   // Ensure that the build directory exists
   fs.ensureDirSync(buildDir);
 
@@ -108,7 +69,7 @@ gulp.task('browserify', ['tsc'], function() {
   return merge(bundleStream, copyStylesheets);
 });
 
-gulp.task('browserify-addons', ['tsc'], function() {
+gulp.task('browserify-addons', function() {
   const bundles = addons.map((addon) => {
     const addonOptions = {
       basedir: `${buildDir}/addons/${addon}`,
@@ -192,8 +153,9 @@ gulp.task('webpack', ['build'], function() {
     .pipe(gulp.dest('demo/dist/'));
 });
 
-gulp.task('watch', ['webpack'], () => {
-  gulp.watch(['./src/*', './src/**/*'], ['webpack']);
+
+gulp.task('watch-demo', ['webpack'], () => {
+  gulp.watch(['./demo/*', './lib/**/*'], ['webpack']);
 });
 
 /**
diff --git a/package.json b/package.json
index 5c7574ee..54c93e62 100644
--- a/package.json
+++ b/package.json
@@ -12,9 +12,9 @@
     "@types/jsdom": "^11.0.1",
     "@types/mocha": "^2.2.33",
     "@types/node": "6.0.108",
-    "@types/text-encoding": "0.0.32",
     "browserify": "^13.3.0",
     "chai": "3.5.0",
+    "concurrently": "^3.5.1",
     "express": "4.13.4",
     "express-ws": "2.0.0-rc.1",
     "fs-extra": "^1.0.0",
@@ -37,7 +37,7 @@
     "sorcery": "^0.10.0",
     "tslint": "^5.9.1",
     "tslint-consistent-codestyle": "^1.13.0",
-    "typescript": "~2.7.1",
+    "typescript": "2.8.3",
     "vinyl-buffer": "^1.0.0",
     "vinyl-source-stream": "^1.1.0",
     "webpack": "^3.10.0",
@@ -45,17 +45,18 @@
     "zmodem.js": "^0.1.5"
   },
   "scripts": {
-    "start": "node demo/app",
+    "start": "concurrently --kill-others-on-fail --names 'demo,server' 'gulp watch-demo' 'node demo/app'",
     "start-zmodem": "node demo/zmodem/app",
     "lint": "tslint 'src/**/*.ts'",
     "test": "npm-run-all mocha lint",
     "mocha": "gulp test",
     "build:docs": "jsdoc -c jsdoc.json",
     "tsc": "tsc",
+    "prebuild": "concurrently --kill-others-on-fail --names \"lib,attach,fit,fullscreen,search,terminado,webLinks,winptyCompat,zmodem,css\" \"tsc\" \"tsc -p ./src/addons/attach\" \"tsc -p ./src/addons/fit\" \"tsc -p ./src/addons/fullscreen\" \"tsc -p ./src/addons/search\" \"tsc -p ./src/addons/terminado\" \"tsc -p ./src/addons/webLinks\" \"tsc -p ./src/addons/winptyCompat\" \"tsc -p ./src/addons/zmodem\" \"gulp css\"",
     "build": "gulp build",
     "prepublish": "npm run build",
     "coveralls": "gulp coveralls",
     "webpack": "gulp webpack",
-    "watch": "gulp watch"
+    "watch": "concurrently --kill-others-on-fail --names \"lib,attach,fit,fullscreen,search,terminado,webLinks,winptyCompat,zmodem,css\" \"tsc -w\" \"tsc -w -p ./src/addons/attach\" \"tsc -w -p ./src/addons/fit\" \"tsc -w -p ./src/addons/fullscreen\" \"tsc -w -p ./src/addons/search\" \"tsc -w -p ./src/addons/terminado\" \"tsc -w -p ./src/addons/webLinks\" \"tsc -w -p ./src/addons/winptyCompat\" \"tsc -w -p ./src/addons/zmodem\" \"gulp watch-css\""
   }
 }
diff --git a/src/addons/attach/tsconfig.json b/src/addons/attach/tsconfig.json
index 19954249..12e75810 100644
--- a/src/addons/attach/tsconfig.json
+++ b/src/addons/attach/tsconfig.json
@@ -6,7 +6,8 @@
     "outDir": "../../../lib/addons/attach/",
     "sourceMap": true,
     "removeComments": true,
-    "declaration": true
+    "declaration": true,
+    "preserveWatchOutput": true
   },
   "include": [
     "**/*.ts",
diff --git a/src/addons/fit/tsconfig.json b/src/addons/fit/tsconfig.json
index e1dce37f..f806af18 100644
--- a/src/addons/fit/tsconfig.json
+++ b/src/addons/fit/tsconfig.json
@@ -6,7 +6,8 @@
     "outDir": "../../../lib/addons/fit/",
     "sourceMap": true,
     "removeComments": true,
-    "declaration": true
+    "declaration": true,
+    "preserveWatchOutput": true
   },
   "include": [
     "**/*.ts",
diff --git a/src/addons/fullscreen/tsconfig.json b/src/addons/fullscreen/tsconfig.json
index 5a06c490..2fbb295f 100644
--- a/src/addons/fullscreen/tsconfig.json
+++ b/src/addons/fullscreen/tsconfig.json
@@ -6,7 +6,8 @@
     "outDir": "../../../lib/addons/fullscreen/",
     "sourceMap": true,
     "removeComments": true,
-    "declaration": true
+    "declaration": true,
+    "preserveWatchOutput": true
   },
   "include": [
     "**/*.ts",
diff --git a/src/addons/search/tsconfig.json b/src/addons/search/tsconfig.json
index d833bb28..47876a00 100644
--- a/src/addons/search/tsconfig.json
+++ b/src/addons/search/tsconfig.json
@@ -6,7 +6,8 @@
     "outDir": "../../../lib/addons/search/",
     "sourceMap": true,
     "removeComments": true,
-    "declaration": true
+    "declaration": true,
+    "preserveWatchOutput": true
   },
   "include": [
     "**/*.ts",
diff --git a/src/addons/terminado/tsconfig.json b/src/addons/terminado/tsconfig.json
index 2c795b99..b664a5e0 100644
--- a/src/addons/terminado/tsconfig.json
+++ b/src/addons/terminado/tsconfig.json
@@ -6,7 +6,8 @@
     "outDir": "../../../lib/addons/terminado/",
     "sourceMap": true,
     "removeComments": true,
-    "declaration": true
+    "declaration": true,
+    "preserveWatchOutput": true
   },
   "include": [
     "**/*.ts",
diff --git a/src/addons/webLinks/tsconfig.json b/src/addons/webLinks/tsconfig.json
index b34f544d..7dd999f6 100644
--- a/src/addons/webLinks/tsconfig.json
+++ b/src/addons/webLinks/tsconfig.json
@@ -6,7 +6,8 @@
     "outDir": "../../../lib/addons/webLinks/",
     "sourceMap": true,
     "removeComments": true,
-    "declaration": true
+    "declaration": true,
+    "preserveWatchOutput": true
   },
   "include": [
     "**/*.ts",
diff --git a/src/addons/winptyCompat/tsconfig.json b/src/addons/winptyCompat/tsconfig.json
index fdca3e3d..ecad2563 100644
--- a/src/addons/winptyCompat/tsconfig.json
+++ b/src/addons/winptyCompat/tsconfig.json
@@ -6,7 +6,8 @@
     "outDir": "../../../lib/addons/winptyCompat/",
     "sourceMap": true,
     "removeComments": true,
-    "declaration": true
+    "declaration": true,
+    "preserveWatchOutput": true
   },
   "include": [
     "**/*.ts",
diff --git a/src/addons/zmodem/tsconfig.json b/src/addons/zmodem/tsconfig.json
index f5693801..d4577108 100644
--- a/src/addons/zmodem/tsconfig.json
+++ b/src/addons/zmodem/tsconfig.json
@@ -6,7 +6,8 @@
     "outDir": "../../../lib/addons/zmodem/",
     "sourceMap": true,
     "removeComments": true,
-    "declaration": true
+    "declaration": true,
+    "preserveWatchOutput": true
   },
   "include": [
     "**/*.ts",
diff --git a/tsconfig.json b/tsconfig.json
index c33793f5..e39ea642 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -12,6 +12,7 @@
     "outDir": "lib",
     "sourceMap": true,
     "removeComments": true,
+    "preserveWatchOutput": true,
     "noUnusedLocals": true,
     "noImplicitAny": true
   },