I have heard a rumor that the Research/Engineering EMTECH Organization Charges $400+ USD per hour to an Affiliate for EMTECH Services in 2025. Is this True?
Pre-2020, the cost of an SME in EMRE (now EMTECH) was only $230 per hour and the cost of a Junior Engineer was $180 per hour.
Why is EMTECH so expensive in 2025?
We new in 1999 when Exxon acquired Mobil that the NPV of most of EMRE's downstream and chemical technologies was close to "ZERO". We spent 20 years of sunk cost in research and engineering costs before any supposedly "NEW" technology started generating a positive cash flow.
We could have easily licensed any of our "NEW" technologies from a 3-party before spending 20 years on research and engineering costs.
$0 value from research. all claims are made up numbers lied and forced in by managers who want want to save their jobs.
EMTech had more wins compared to Upstream and LCS lately ...prove me wrong
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@bc 100% correct!
Bigger question is what is EMTEC delivering for that $400.00 an hour, Research in this company is over folks, can you say outsourcing
@c7 only a tiny part of what EMTECH does qualifies for the R&D write off
@g2 the average salary is going up because they are getting rid of the people at the bottom of the pyramid (worker bees) and adding more managers. It is without a doubt the stupidest thing I've ever seen.
It’s calculated based on an average SWB rate (salary, wages, and benefits) for the employees in the organization plus a small interafilliate service fee mark-up necessary for law purposes (arms length transaction). If the going rate is higher, then people are just being paid more on average.
Corporate tax writeoff in 2025 for research and development
In 2025, businesses can fully deduct domestic research and experimental (R&E) expenditures in the year they are paid or incurred, thanks to the reinstated expensing treatment under Section 174A of the One Big Beautiful Bill. This change applies to product and software development, engineering and testing work, and technical prototypes and experimental research. Foreign R&D expenditures, however, must continue to be capitalized and amortized over 15 years. Small businesses may also retroactively apply the new rules to prior tax years by filing amended returns.
This is why our day rates are greater than $400 per hour. It's a TAX WRITEOFF AGAIN.
We in upstream were 300 to 400 USD per hour of time on a project. Lots of time they would chose an outside lab to do the work because we were too expensive. India's hourly rate is dirt cheap and this is why everything is moving to BTC. Research is dead at exxon.
Because there's like 100 people left working and 1000 managers. Every time they cut the number of worker bees in half the cost per hour doubles because they havent cut management layers and need to recoup the same amount of overhead. The entire scheme is a-s backwards. It's a death spiral.
Probably not far from the truth. GP major projects charged $415/hr when I was there.
EM is spreading the cost. Big scam.
EMTECH research must end, its a drain and a drag with the worst employees.
None of these costs matter: these costs are "tiger" bucks ...
The question sr mgmt. decides on what the headcount and first incurred outdoor costs should be in EMTech, EMPS, Upstream, IT, E&PS ... these costs are just an outcome ... if you are concerned and if the work is not adding value, ask a question to your sr mgmt
Because EMRE was primarily downstream, and EMTECH added a bunch of upstream employees, who were charging out a lot more. It happened to GP as well when they combined everyone.
because that fancy glass cube in the air doesn't pay for itself? Also to fleece money off affliates like Imperial Oil of their money.