Factory drivers by English Channel (8)
I believe the answer is:
millrace
'channel' is the definition.
(millrace is a kind of channel)
'factory drivers by english' is the wordplay.
'factory' becomes 'mill' ('mill' can be a synonym of 'factory').
'drivers' becomes 'rac' (I've seen this in other clues).
'by' means one lot of letters go next to another.
'english' becomes 'e' (abbreviation).
'mill'+'rac'+'e'='MILLRACE'
(Other definitions for millrace that I've seen before include "Channel for the water current that turns a wheel" , "current providing power" , "Channel leading to water wheel" , "Channel for water driving wheel" , "Flow of water" .)