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Mercedes head of motorsport Toto Wolff has said that his team must work "very hard" if they are to remain in front of Red Bull and Ferrari.
The championship leaders' rivals have made big gains this season and the Austrian believes that his team has to improve both the engine and their car's aerodynamics if they are to retain their titles.
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"The pace of Ferrari and Red Bull (in Canada) showed that the competition is right there with us. We need to get everything right in order to maintain our position at the front," he said.
The team are expected to bring aero revisions to next month's British Grand Prix while Ferrari are expected to bring further power unit updates to Silverstone.
Ferrari driver Sebastian Vettel thinks that the latest update from Maranello will make the gap to Mercedes even tighter.
"All our improvements so far have proved effective. In a few races we were still a long way from Mercedes, but although it won't be easy, there will come a time when we're in front."
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